5 Written questions
5 Matching questions
- If consumers save 21 cents out of every dollar received, the:
- In the long run, a company will stay in business as long as price is:
- A market shortage occurs when:
- Which of the following do a monopolist and a competitive firm have in common?
- It is impossible to:
- a Greater than or equal to average total costs.
- b The market price is below equilibrium
- c Profit-maximization rule.
- d MPS is 0.21.
- e Avoid fixed costs in the short run.
5 Multiple choice questions
- Decreases in production were temporary.
- The skills and abilities of workers.
- Barriers to entry.
- Does not change total revenue.
5 True/False questions
A natural monopoly is a firm that: → Can produce the entire market supply more efficiently than any number of smaller firms.
As the economy falls from the peak to the trough of the business cycle: → Maximizes total profit.
When producing jeans, which of the following is not a variable cost in the short run? → Some inputs are fixed.
A HEADLINE article in the text, titled "Music Firms Settle Lawsuit" discusses price fixing by music companies and retailers. Which market structure is most likely to be successful in price fixing? → Oligopoly but not perfect competition.
Economists make a distinction between changes in quantity demanded and changes in demand: → Government intervention should be used to correct business cycles.