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Selected Answer:
Question 2
1 out of 1 points
Jane pays the market price of $69 for a new pair of running shoes,
even though she would be happy to pay a maximum of $100 for
the same pair of shoes. This is an example of the concept of
Selected Answer:
consumer surplus.
Correct Answer:
consumer surplus.
Question 3
1 out of 1 points
Question 4
1 out of 1 points
$7.
Correct Answer:
$7.
Question 5
1 out of 1 points
both a and b.
Correct Answer:
both a and b.
Question 6
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $40. Your firm's cost function is C = 60 + 4Q2.
The profit-maximizing output for your firm is
Selected Answer:
5.
Correct Answer:
5.
Question 7
0 out of 1 points
Question 8
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $60. Your firm's cost function is C = 50 + 3Q2.
The profit-maximizing output for your firm is
Selected Answer:
10.
Correct Answer:
10.
Question 9
1 out of 1 points
Question 10
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $50. Your firm's cost function is C = 40 + 5Q2.
Your firm's maximum profits are
Selected Answer:
85.
Correct Answer:
85.
Question 11
1 out of 1 points
Question 12
1 out of 1 points
Correct Answer:
minimize.
Question 13
1 out of 1 points
When the own price elasticity of good X is -3.5 then total revenue
can be increased by
Selected Answer:
Question 14
1 out of 1 points
If the price of pork chops falls from $8 to $6, and this leads to an
increase in demand for apple sauce from 100 to 140 jars, what is
the cross price-elasticity of apple sauce and pork chops at a pork
chop price of $6?
Selected Answer:
-.1.17.
Correct Answer:
-.1.17.
-0.003.
Correct Answer:
-0.003.
Question 2
1 out of 1 points
Question 3
1 out of 1 points
Correct
Answer:
If you are in the business of selling chicken and the price of selling
chicken and the price of beef both were to drop dramatically, what
should you do with your inventory level of chicken?
Selected Answer:
Question 5
1 out of 1 points
Question 6
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $60. Your firm's cost function is C = 33 + 3Q2.
The profit-maximizing output for your firm is
Selected Answer:
10
Correct Answer:
10
Question 7
1 out of 1 points
Let the demand function for a product be Q = 100 - 2P. The inverse
demand function of this demand function is:
Selected Answer:
P = 50 - 0.5Q.
Correct Answer:
P = 50 - 0.5Q.
Question 8
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $60. Your firm's cost function is C = 50 + 3Q2.
Your firm's maximum profits are
Selected Answer:
250.
Correct Answer:
250.
Question 9
1 out of 1 points
Question 10
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $60. Your firm's cost function is C = 50 + 3Q2.
The profit-maximizing output for your firm is
Selected Answer:
10.
Correct Answer:
10.
Question 11
1 out of 1 points
$50.
Correct Answer:
$50.
Question 12
1 out of 1 points
For the cost function C(Q) = 100 + 2Q + 3Q2, the marginal cost of
producing 2 units of output is
Selected Answer:
14.
Correct Answer:
14.
Question 13
1 out of 1 points
The supply function for good X is given by Q x s = 1,000 + PX - 5 PY 2PW , where PX is the price of X, PY is the price of good Y and PW is
the price of input W. If the price of input W increases by $10, then
the supply of good X
Selected Answer:
Question 14
1 out of 1 points
up by $1.00.
Correct Answer:
up by $1.00.
Tuesday, February 3, 2015 9:14:48 PM EST
The supply function for good X is given by Q x s = 1,000 + PX - 5 PY 2PW , where PX is the price of X, PY is the price of good Y and PW is the
price of input W. If PX = 100, PY = 150 PW = 50, then the supply curve is
Selected Answer:
= 150 + Px.
= 150 + Px.
Correct Answer:
Question 2
1 out of 1 points
$19.
Correct Answer:
$19.
Question 3
0 out of 1 points
are equal.
Correct
Answer:
a and b.
Question 4
1 out of 1 points
$50.
Correct Answer:
$50.
Question 5
0 out of 1 points
monopolistic markets.
Correct Answer:
both b and c.
Question 6
0 out of 1 points
both b and c.
Question 7
1 out of 1 points
Question 8
1 out of 1 points
Question 9
1 out of 1 points
8.
Correct Answer:
8.
Question 10
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $60. Your firm's cost function is C = 33 + 3Q2.
The profit-maximizing output for your firm is
Selected Answer:
10
Correct Answer:
10
Question 11
1 out of 1 points
20.0.
Correct Answer:
20.0.
Question 12
1 out of 1 points
Beverages.
Correct Answer:
Beverages.
1 out of 1 points
Question 2
1 out of 1 points
$40.
Correct Answer:
$40.
Question 3
1 out of 1 points
A shortage of 34 units.
Correct Answer:
A shortage of 34 units.
Question 4
1 out of 1 points
Question 5
1 out of 1 points
Question 6
1 out of 1 points
Question 7
1 out of 1 points
Question 8
1 out of 1 points
33.
Correct Answer:
33.
Question 9
1 out of 1 points
$110.
Correct Answer:
$110.
Question 10
1 out of 1 points
$50.
Correct Answer:
$50.
Question 11
1 out of 1 points
both b and c.
Correct Answer:
both b and c.
Question 12
1 out of 1 points
economies of scale.
Correct Answer:
economies of scale.
Correct
Answer:
If you advertise and your rival advertises, you each will earn $4
million in profits. If neither of you advertise, you will each earn $10
million in profits. However, if one of you advertises and the other
does not, the firm that advertises will earn $1 million and the non
advertising firm will earn $5 million. If you and your rival plan to
hand your business down to your children (and this "bequest" goes
on forever) then a Nash equilibrium is
Selected Answer:
Question 3
1 out of 1 points
Collusion is:
Selected Answer:
Correct Answer:
Question 4
1 out of 1 points
Question 5
1 out of 1 points
Selected Answer:
Question 6
1 out of 1 points
$32
Correct Answer:
$32
Question 7
1 out of 1 points
Question 8
1 out of 1 points
both a and b.
Correct Answer:
both a and b.
Question 9
1 out of 1 points
described by P = 230 - 20Q. Your costs are C = 5 + 30Q. The profitmaximizing output for your firm is
Selected Answer:
5.
Correct Answer:
5.
Question 10
1 out of 1 points
Question 11
1 out of 1 points
The demand for good X is given by lnQ xd = 120 - 0.9 lnPx + 1.5
lnPy - 0.7 lnM. Which of the following statements is correct?
Selected Answer:
decrease.
Correct Answer:
increase.
Question 2
1 out of 1 points
Selected Answer:
Question 3
1 out of 1 points
$18.
Correct Answer:
$18.
Question 4
0 out of 1 points
peak-load pricing.
Correct Answer:
Question 5
1 out of 1 points
Question 6
0 out of 1 points
Question 7
1 out of 1 points
You are the manager of a firm that sells its product in a competitive
market at a price of $40. Your firm's cost function is C = 60 + 4Q2.
The profit-maximizing output for your firm is
Selected Answer:
5.
Correct Answer:
5.
Question 8
1 out of 1 points
Question 9
1 out of 1 points
Question 10
0 out of 1 points
Selected Answer:
increase.
Correct Answer:
decrease.
Question 11
0 out of 1 points
Correct
Answer:
Question 2
1 out of 1 points
both b and c.
Correct Answer:
both b and c.
Question 3
1 out of 1 points
Correct
Answer:
Make sure the problem you are considering is of a oneshot or repeated nature, and you model it accordingly
because the order in which players make decisions is
important.
Make sure the problem you are considering is of a oneshot or repeated nature, and you model it accordingly
because the order in which players make decisions is
important.
Question 4
1 out of 1 points
You are the manager of a supermarket, and know that the income
elasticity of peanut butter is exactly -0.7. Due to the recession, you
expect incomes to drop by 15% next year. How should you adjust
your purchase of peanut butter?
Selected Answer:
Question 5
1 out of 1 points
The firm manager with indifference curves which are convex from
the origin (output on the horizontal axis and profit on the vertical
axis) views
Selected Answer:
Question 6
1 out of 1 points
Correct
Answer:
Correct Answer:
Question 8
1 out of 1 points
$9.
Correct Answer:
$9.
Question 9
1 out of 1 points
Correct Answer:
Question 10
1 out of 1 points
Question 11
1 out of 1 points
180
Correct Answer:
180
Jane pays the market price of $69 for a new pair of running shoes,
even though she would be happy to pay a maximum of $100 for the
same pair of shoes. This is an example of the concept of
Selected Answer:
consumer surplus.
Correct Answer:
consumer surplus.
Question 2
1 out of 1 points
A risk neutral monopoly must set output before it knows for sure
the market price. There is a 50% chance the firm's demand curve
will be P = 20 - Q and a 50% chance it will be P = 40 - Q. The
marginal cost of the firm is MC = Q. What is the expression for the
expected marginal revenue function?
Selected Answer:
E(MR) = 30 - 2Q.
Correct Answer:
E(MR) = 30 - 2Q.
Question 3
1 out of 1 points
Question 4
1 out of 1 points
Question 5
1 out of 1 points
increased.
Correct Answer:
increased.
Question 6
1 out of 1 points
Selected Answer:
$40.
Correct Answer:
$40.
Question 7
1 out of 1 points
Question 8
1 out of 1 points
Correct Answer:
Question 9
1 out of 1 points
Question 10
1 out of 1 points
The recipe that defines the maximum amount of output that can be
produced with K units of capital and L units of labor is the:
Selected Answer:
Production function.
Correct Answer:
Production function.
Question 11
1 out of 1 points
If you advertise and your rival advertises, you each will earn $5
million in profits. If neither of you advertise, you will each earn $10
million in profits. However, if one of you advertises and the other
does not, the firm that advertises will earn $15 million and the non
advertising firm will earn $1 million. Suppose this game is repeated
for a finite number of times, but the players do not know the exact
date at which the game will end. The players can earn collusive
profits as a Nash equilibrium to the repeated play of the game if the
probability the game terminates in any period is
Selected Answer:
close to zero.
Correct Answer:
close to zero.
Question 12
1 out of 1 points
EM = EF/N.
Correct Answer:
EM = EF/N.
Question 13
0 out of 1 points
Selected Answer:
type B consumers.
Correct Answer:
both a and b.
Question 14
1 out of 1 points
Beverages.
Correct Answer:
Beverages.
$280.
Correct Answer:
$280.
Question 2
1 out of 1 points
What price should a firm charge for a package of two shirts given a
marginal cost of $4 and an inverse demand function P = 8 - 2Q by
the representative consumer?
Selected Answer:
$12.
Correct Answer:
$12.
Question 3
1 out of 1 points
Selected Answer:
Question 4
1 out of 1 points
Which firm would you expect to make the lowest profits, other
things equal:
Selected Answer:
Bertrand oligopolist.
Correct Answer:
Bertrand oligopolist.
Question 5
1 out of 1 points
A shortage of 34 units.
Correct Answer:
A shortage of 34 units.
Question 6
1 out of 1 points
If a firm offers to pay a worker $10 for each hour of leisure the
worker gives up then the opportunities confronting the worker will
be given by
Selected Answer:
Question 7
1 out of 1 points
The demand for good X has been estimated to be lnQ xd = 100 - 2.5
lnPX + 4 lnPY + lnM. The own price elasticity of good X is
Selected Answer:
-2.5.
Correct Answer:
-2.5.
Question 8
1 out of 1 points
If you advertise and your rival advertises, you each will earn $4
million in profits. If neither of you advertise, you will each earn $10
million in profits. However, if one of you advertises and the other
does not, the firm that advertises will earn $1 million and the non
advertising firm will earn $5 million.
Which of the following is true?
Selected Answer:
Question 9
1 out of 1 points
A risk neutral monopoly must set output before it knows for sure
the market price. There is a 50% chance the firm's demand curve
will be P = 20 - Q and a 50% chance it will be P = 40 - Q. The
marginal cost of the firm is MC = Q. The expected profit-maximizing
quantity is:
Selected Answer:
10.
Correct Answer:
10.
Question 10
1 out of 1 points
You are a hotel manager, and are considering four projects that yield different payoffs,
depending upon whether there is an economic boom or recession. There is a $50%
probability of a boom and a 50% probability of a recession. The potential payoffs and
corresponding payoffs are Project A makes $20 in a boom and -$10 in a recession, Project B
makes -$10 in a boom and $20 in a recession, Project C make $30 in a boom and -$30 in a
recession, and Project D makes $50 in both a boom and a recession.
Selected Answer:
225.
Correct Answer:
225.
Question 11
1 out of 1 points
Question 12
1 out of 1 points
You are a hotel manager, and are considering four projects that
yield different payoffs, depending upon whether there is an
economic boom or recession. There is a $50% probability of a boom
and a 50% probability of a recession. The potential payoffs and
corresponding payoffs are Project A makes $20 in a boom and -$10
in a recession, Project B makes -$10 in a boom and $20 in a
recession, Project C make $30 in a boom and -$30 in a recession,
and Project D makes $50 in both a boom and a recession. Which
project has the greatest variance?
Selected Answer:
C.
Correct Answer:
C.
Question 13
1 out of 1 points
6.3.
Correct Answer:
6.3.
Question 14
1 out of 1 points
10.
Correct Answer:
10.
Question 2
1 out of 1 points
Question 3
1 out of 1 points
Jane wants to buy a beautiful doll as a gift for her sister's birthday.
She knows that the same product is offered in different shops with
prices of $120, $100 and $80 with odds of 1/3 of each price. She
just stopped at a shop and knows that the price is $100. If the
search cost is $8 per time, what should she do?
Selected Answer:
Question 4
1 out of 1 points
12.6%
Correct Answer:
12.6%
Question 5
1 out of 1 points
Correct
Answer:
You are the manager of a firm that sells its product in a competitive
market at a price of $60. Your firm's cost function is C = 50 + 3Q2.
The profit-maximizing output for your firm is
Selected Answer:
10.
Correct Answer:
10.
Question 7
1 out of 1 points
You are the manager of a firm that produces output in two plants.
The demand for your firm's product is P = 20-Q, where Q = Q1 + Q2.
The marginal cost associated with producing in the two plants are
MC1 = 2 and MC2 = 2Q2. How much output should be produced in
plant 1 in order to maximize profits?
Selected Answer:
8.
Correct Answer:
8.
Question 8
1 out of 1 points
10.
Correct Answer:
10.
Question 9
1 out of 1 points
15.
Correct Answer:
15.
Question 10
1 out of 1 points
Correct
Answer:
Which would you expect to make the highest profits, other things
equal?
Selected Answer:
Stackelberg leader.
Correct Answer:
Stackelberg leader.
Question 12
1 out of 1 points
5.2.
Correct Answer:
5.2.
Question 13
1 out of 1 points
Correct Answer:
Question 14
1 out of 1 points