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University of Management and Technology Course Exam Questions

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Question;1) In a perfectly competitive market, the firm hires labor up to the point at whicha) The marginal revenue product of labor is zerob) The marginal revenue product of labor equals the wage ratec) The marginal factor cost of labor is zerod) None of the above2) For the individual worker, the opportunity cost of leisure is a) The forgone wagesb) The expense incurred in pursuing leisure activitiesc) The risk she will eventually become unemployedd) Zero3) When the price of product increases, the marginal revenue product curve in a perfectly competitive marketa) Shifts to the leftb) Shits to the rightc) Does not changed) Becomes flatter4) If a firm employs a new worker, the additional product he generates is a) The diminished returnb) The marginal physical product of laborc) The outside edged) Total product5) Which of the following is TRUEa) In the model of price leadership, the dominant firm consistently charges the lowest priceb) Opportunistic behavior is discouraged by the desire to have repeat transactionsc) The strategic dependence that characterizes oligopoly means that no firms can earn positive accounting profitsd) Price wars are most common in perfect competition 6) A monopolist will not make a profit if a) MR = MC b) P ATC d) P> MR 7) Economies of scale may be a barrier to entry as a) only small-scale production can meet the constantly changing market demand b) only small-scale production can lower the per-unit cost of production c) only large-scale production can lower the per-unit cost of production d) large-scale production is inefficient 8) The time frame in which all factors of production can vary is a) the long run b) the short run c) the fiscal year d) the length of time for which a sole proprietorship is protected with limited liability9) If a potter can create 10 vases at a total cost $180 and can produce 30 vases for a total cost of $400, then the marginal cost of a vase in the quantity range between 10 and 30 is a) $40 b) $18 c) $11 d) $1310) When would a firm?s accounting profit differ from its economic profit a) when the firm?s marginal cost is increasingb) when the firm?s total explicit costs differ from the opportunity cost of all inputs usedc) when the firm?s total revenue does not cover its fixed costsd) when the firm has fixed costs11)LLC?s are exempt from minimum wage lawsa) trueb) false12) To be considered a monopoly, a firm must serve a national marketa) trueb) false13) markets tend to overallocate resources to the production of a good whena) there are positive externalitiesb) there are negative externalititesc) there are public goods producedd) equilibrium occurs14) A result of a positive externality in the production of a good is thata) the price system will under-allocate resources to the production of that good or serviceb) the market demand will be too highc) the price system will over-allocate resources to the production of that good or serviced) the market supply will be too high15) Market failures arise whena) people look out for their own best interestsb) there is a gap between the social and private costs of producing or consuming a goodc) firms look out for their own best interestsd) society seeks to operate at a point on the production possibilities curve16) The price system will allocate resources efficiently except whena) firms seek to maximize profitb) market failures existc) consumers pursue their own best interestsd) markets are perfectly competitive

 

Paper#56858 | Written in 18-Jul-2015

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