Vous êtes sur la page 1sur 3

10/13/2015

TheAceStudent:GrandECN360/ECN360MidtermExam(A+++++)35QUESTIONS

GrandECN360/ECN360MidtermExam(A+++++)35
QUESTIONS
GrandECN360/ECN360MidtermExam(A+++++)35QUESTIONS
Question
1.Aninferiorgoodhasanincomeelasticityofdemandthatis
zero.
negative.
positive.
positivebutlessthan1.
2.Intheabovefigure,whenthismonopolisticallycompetitivefirmproducesitsprofitmaximizing
output,itsetsaperunitpriceof
$10.
$13.
$8.
$11.
3.Refertotheabovefigure.Theprofitmaximizingquantityforthisfirmis
Q2.
Q3.
Q1.
zero.
4.Refertotheabovefigure.AjaxandGreencoareoligopolists.Aboveyouaregiventhepayoff
matrixforthetwofirmsgivingthepayoffassociatedwithdifferentpricingstrategies.Whatisthe
beststrategyforGreencoifAjaxdecidesonchargingahighprice?
Thereisnobeststrategy.
Highprice
Lowprice
Notenoughinformationisgiventodeterminethebeststrategy.
5.Intheabovefigure,thelongruncostcurvebetweenpointsAandBillustrates
diminishingmarginalproduct.
diseconomiesofscale.
economiesofscale.
constantreturnstoscale.
6.Theperfectlycompetitivefirmcannotinfluencethemarketpricebecause
itsproductionistoosmalltoaffectthemarket.
ithasmarketpower.
itscostsaretoohigh.
itisapricemaker.
7.Intheabovefigure,whatistheprofitmaximizingoutputandprice?
10,$8
12,$10
10,$10
8,$7
8.Thedemandcurvefacedbyamonopolisticallycompetitivefirmsis
horizontal.
vertical.
downwardsloping.
unitaryelastic.
9.Intheabovefigure,themonopolisticallycompetitivefirmsprofitmaximizingoutputis
1,000units.
300units.
data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px

1/3

10/13/2015

TheAceStudent:GrandECN360/ECN360MidtermExam(A+++++)35QUESTIONS

700units.
900units.
10.Whichofthefollowingwillcauseashiftinthedemandcurveoflabor?
Anincreaseordecreaseintheproductivityoflabor.
Anincreaseordecreaseinthedemandfortheproductlaborproduces.
Adeclineinthepriceofacomplementaryinput.
alloftheabove
11.Ifthesocialcostsofrefiningoilaregreaterthantheprivatecostsofoilrefining,then
thereistoomuchoilrefining.
usersofproductsthatuserefinedoilarepayingtoomuchfortheproducts.
theamountofoilrefiningneedstoincreaseinordertobringsocialcostsandprivatecostsinline
witheachother.
theexternalcostsofoilrefiningaregreaterthanthesocialcostsofoilrefining.
12.Refertotheabovefigure.WhichpanelrepresentswhathappensintheU.S.jobmarketinthe
shortrunwhenU.S.firmssubstitutelaboroutsideoftheU.S.forlaborinsidetheU.S.?
PanelA
PanelB
PanelC
PanelD
13.Refertotheabovetable.Thisfirmoperatesinaperfectlycompetitivemarketinwhichthe
marketpriceis$10perunit.Whatisitsprofitmaximizingrateofproduction?
108units
110units
104units
106units
14.Intheabovetable,theaveragephysicalproductofthe3rdworkeris
12.
3.
5.
4.
15.IndustryXhasfourfirms.ThelargestfirminIndustryXhasmorethan90percentofthemarket
share.IndustryYalsohasfourfirms,buteachofthosefourfirmsinIndustryYhas25percentof
themarketshare.TheHerfindahlHirschmanindexwillbe
largerforIndustryXthanIndustryY,butthefourfirmconcentrationwillbethesame.
largerforIndustryYthanIndustryX,butthefourfirmconcentrationwillbethesame.
thesameforbothindustries,butthefourfirmconcentrationwillbelargerforIndustryYthan
IndustryX.
thesameforbothindustries,butthefourfirmconcentrationwillbelargerforIndustryXthan
IndustryY.
16.Theperfectlycompetitivefirmfaces
adownwardslopingdemandcurve.
constantmarginalcosts.
perfectlyelasticdemand.
ahorizontalsupplyfunction.
17.Iffivefirmsofsimilarsizesjointoformacartel,thenitismostlikelythat
allfivefirmswillearnthesameprofitsasbefore.
theywillcollectivelyproducelessthanbefore.
theywillchargeacommon,lowermarketprice.
allfivefirmsasagroupwillhavefallingprofits,butincreasedoutput.
18.Ifweaddsuccessivelaborerstoworkagivenamountoflandonawheatfarm,eventually
theincreasesinwheatharvestedwillgetlargerandlarger.
theincreasesinwheatharvestedwillgetsmallerandsmaller.
theincreasesinwheatharvestedwillriseataconstantrate.
averagetotalcostwillfalltozero.
data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px

2/3

10/13/2015

TheAceStudent:GrandECN360/ECN360MidtermExam(A+++++)35QUESTIONS

19.AllofthefollowingarecharacteristicsofmonopolisticcompetitionEXCEPT
productdifferentiation.
manyfirmsintheindustry.
advertising.
afewfirmsdominatetheindustry.
20.Foryears,yourneighborinsistedshehadnodesiretoownacomputer.Recently,however,she
purchasedoneandsaysshedidsobecauseallherrelativeshavecomputersandshewantsto
exchangeemailwiththem.Yourneighborsbehaviorisanexampleof
aswitchingcost.
limitedpricingbehavior.
theimpactofnegativemarketfeedback.
anetworkeffect.
GrandECN360/ECN360MidtermExam(A+++++)35QUESTIONS

data:text/htmlcharset=utf8,%3Ch3%20class%3D%22posttitle%20entrytitle%22%20itemprop%3D%22name%22%20style%3D%22margin%3A%200px

3/3