Blog

A monopoly   takes the market price as given and earns small but positive profits can set the price it charges for its output but faces a downward-sloping demand curve so it cannot earn unlimited profits can set the price it charges for its output but faces a horizontal demand curve so it can earn unlimited profits can set the price it charges for its output and earn unlimited profits

In which type of market is advertising the most important? Monopolistic competition oligopoly       monopoly        perfect competition

Suppose that a small county is considering adding a guard rail to a dangerous curve by a river. The guard rail will cost $70,000. The average damage done to vehicles that slide off the road at the curve is $10,000. It is expected that the guard rail will prevent 5 vehicles from sliding off the road during its usable life. What should the county do? Install the guard rail because safety is priceless Install the guard rail because the benefits exceed the costs Do not install the guard rail because the costs exceed the benefits Do not install the guard rail at any cost because drivers can purchase private insurance for their vehicles

The Coase theorem suggests that private markets may not be able to solve the problem of externalities   when the number of interested parties is large and bargaining costs are high if the firm in the market is a monopoly if some people benefit from the externality if the government does not become involved in the process

Table 14-3 The table represents a demand curve faced by a firm in a competitive market.     Quantity Total Revenue 0 $0 1 $13 2 $26 3 $39 4 $52   Refer to Table 14-3. For this firm, the price is $39. $26. $52. $13.

Suppose that in a competitive market the equilibrium price is $2.50. What is marginal revenue for the last unit sold by the typical firm in this market? 1. exactly $2.50 2. less than $2.50 3. more than $2.50 4. the marginal revenue cannot be determined without knowing the actual quantity sold by the typical seller    

Edward has just finished his brand-new house. The floor plan is shown below: a) Edward wants to give a tour of his house to a friend. Is it possible for them to walk through every doorway exactly once? If so, in which rooms must they begin and end the tour? Explain.b) After a few years, Edward decides to remodel. He would like to add some new doors between the rooms he has. Is it possible for each room to have an odd number of doors? Explain.

Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette market, then   the quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes the quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes the quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes There is not enough information to answer the question

Income Tax rate $0 to $40,000 25% $40,000 to $100,000 40% Over $100,000 60%     Use the table above, how much income tax will you have to pay if you earned $50,000?   $14,000 $20,000   $25,000   $4,000

A production function is a relationship between inputs and   1.  quantity of output.   2.  revenue.   3.  costs.   4.  profit.