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devry ECON-312 week 3 quiz

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Question;(TCO 3) Which of the following is most likely to be an;implicit cost for Company X? Student Answer;Forgone rent from the building owned and used by Company X Rental payments on IBM equipment Payments for raw materials purchased from;Company Y Transportation costs paid to a nearby trucking;firm Instructor Explanation: Chapter 7. Points Received: 1 of 1 Comments: Question 2. Question;(TCO 3) To economists, the main difference between the short;run and the long run is that Student Answer: the law of;diminishing returns applies in the long run, but not in the short run. in the long run all resources are variable;while in the short run at least one resource is fixed. fixed costs are more important to decision;making in the long run than they are in the short run. in the short run all resources are fixed;while in the long run all resources are variable. Instructor Explanation: Chapter 7. Points Received: 1 of 1 Comments: Question 3. Question;(TCO 3) An industry comprised of 40 firms, none of which has;more than 3% of the total market for a differentiated product is an example of Student Answer;monopolistic competition. oligopoly. pure monopoly. pure competition. Instructor Explanation: Chapter 8. Points Received: 1 of 1 Comments: Question 4. Question;(TCO 3) If a firm in a purely competitive industry is;confronted with an equilibrium price of $5, its marginal revenue Student Answer: may be either;greater or less than $5. will also be $5. will be less than $5. will be greater than $5. Instructor Explanation: Chapter 8 Points Received: 1 of 1 Comments: Question 5. Question;(TCO 3) Which of the following is a characteristic of pure;monopoly? Student Answer: Close substitute;products Barriers to entry The absence of market power "Price taking" Instructor Explanation: Chapter 10. Points Received: 1 of 1 Comments: Question 6. Question;(TCO 3) Confronted with the same unit cost data, a;monopolistic producer will charge Student Answer: the same price;and produce the same output as a competitive firm. a higher price and produce a larger output;than a competitive firm. a higher price and produce a smaller output;than a competitive firm. a lower price and produce a smaller output;than a competitive firm. Instructor Explanation: Chapter 10. Points Received: 1 of 1 Comments: Question 7. Question;(TCO 3) Monopolistic competition means Student Answer: a market;situation where competition is based entirely on product differentiation and;advertising. a large number of firms producing a;standardized or homogeneous product. many firms producing differentiated products. a few firms producing a standardized or;homogeneous product. Instructor Explanation: Chapter 11. Points Received: 1 of 1 Comments: Question 8. Question;(TCO 3) The term oligopoly indicates Student Answer: a one-firm;industry. many producers of a differentiated product. a few firms producing either a differentiated;or a homogeneous product. an industry whose four-firm concentration;ratio is low. Instructor Explanation: Chapter 11. Points Received: 1 of 1 Comments: Question 9. Question;(TCO 3) Which of the following is a unique feature of;oligopoly? Student Answer;Mutual interdependence Advertising expenditures Product differentiation Nonprice competition Instructor Explanation: Chapter 11. Points Received: 1 of 1 Comments: Question 10. Question;(TCO 3) An industry having a four-firm concentration ratio;of 85% Student Answer: approximates pure;competition. is monopolistically competitive. is a pure monopoly. is an oligopoly. Instructor Explanation: Chapter 11. Points Received: 1 of 1 Comments: Question 11. Question;(TCO 3) What is the LAW OF DIMINISHING RETURNS, and why is;this law considered a short-run phenomenon? Instructor Explanation: Chapter 7. Points Received: 5 of 5 Comments: Question 12. Question;(TCO 3) Identify the primary characteristics of monopolistic;competition and oligopoly. Give examples of each.="msonormal">

 

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