Homework Answers
Perfect competiton doesn't mean all have equa access and rather there are no barriers to entry but in a whole economy, from region to region access levels changes on the whole. It doesn't mean perfect competition gives equal welfare to all as they might be people who are not interested in that product. But the pricing in a perfect competition means that price is equal to marginal cost which is in turn equal to marginal revenue
Therefore (a) perfect competition guarantees that prices charged for goods exactly reflect the marginal cost of producing them
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Perfect Competition Progress You are on question 10 of 10 Which of the following statements are...
M i nyCLILION Perfect Competition Progress You are on question 4 of 12 Think about the...
M i nyCLILION Perfect Competition Progress You are on question 4 of 12 Think about the short run average and marginal cost curves, which are shown as a function of the level of output being produced. Suppose a firm increases its output and finds that marginal cost is rising and average variable cost is falling. Then, it must be true that over that range of output: marginal cost is below average fixed cost marginal cost is above average variable cost...
Which of the following suggest that real per capita GDP is not a perfect measure of...
Which of the following suggest that real per capita GDP is not a perfect measure of economic well-being? a. population varies across counties b. GDP does not measure the value-added created during home production c. GDP does not take into account the income distribution d. GDP underestimates the value of goods and services produced in the economy because of inflation e. GDP inaccurately measures the value of goods and services produced by the government When do we say that the...
ULU ILLUMId=21 QUESTION 8 When perfect price discrimination occurs, which one of the following statements is...
ULU ILLUMId=21 QUESTION 8 When perfect price discrimination occurs, which one of the following statements is true? a. The outcome is more efficient than with single-price monopoly. b. Buyers buy more products than they want. c. The firm cannot set prices. d. The output is less than the one being produced by single-price monopoly. QUESTION 9 If a perfect price-discriminating monopoly faces the demand schedule shown in the table below, and if marginal cost is constant at $6, what is...
Question 10 (5 points) Which price index comprises the prices of all final goods and services...
Question 10 (5 points) Which price index comprises the prices of all final goods and services produced within the economy? a) the consumer price index Ob) the GDP inflator O C) the GDP deflator d) the producer price index Question 11 (5 points) ✓ Saved What do we call an increase in the average level of prices in an economy?
QUESTION 3 Which of the following was not one of the determinants of how fast an...
QUESTION 3 Which of the following was not one of the determinants of how fast an economy can grow (as discussed in Chapter 11)? Human capital Actually, all of the above were determinants of economic growth as discussed in Chapter 11 The overall price level Technological change QUESTION 4 Which of the following was not discussed in class and in lecture as one of the factors that can inhibit a country's economic growth? Actually all three of the above were...
48. Which statement explains why free markets fail to produce public goods? Firms do not want...
48. Which statement explains why free markets fail to produce public goods? Firms do not want to produce the good because they fear competition will drive the price down below costs. Consumers do not want to buy the good because the price is higher than the value of benefits they would receive. ° Consumers do not want to buy the product because each hopes that someone else will buy it and then all consumers will be able to have the...
1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to: Group of answer choices Pure Monopoly only Perfect Competition only...
1) The "Profit-Max/Loss-Min/Shutdown Rule" applies to: Group of answer choices Pure Monopoly only Perfect Competition only Most market structures All market structures 3) A firm in a monopoly market structure always operates at an economic profit. Group of answer choices True False 4) Comparing monopoly and competitive market structures, "Deadweight Loss" refers to: Group of answer choices Underground markets developing to supply the monopoly good. Shortages caused by high monopoly pricing. The production gap resulting from under-allocation of resources. Surpluses...
Which of the following options best describes market structures from the lowest to the highest degree...
Which of the following options best describes market structures from the lowest to the highest degree of market power? Perfect competition, monopolistic competition, oligopoly, monopoly Oligopoly, monopoly, monopolistic competition, perfect competition Monopoly, perfect competition, oligopoly, monopolistic competition Monopolistic competition, oligopoly, monopoly, perfect competition A cable company has determined that the marginal revenue from an additional subscriber is $15, and the marginal cost of providing cable services is $5. Based on this information, what should the company do? Increase the quantity...
Answer the question on the basis of the following information: Suppose 30 units of product A...
Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3, respectively. Production Techniques : Labor 4 3 2 Capital 2 3 Which technique is economically most efficient in producing A? Multiple Choice ON < Prev 20 of 50 !!! Which of the following is not a major category...
Question 10 1 pts Assume that velocity is stable during a particular year. If the Fed...
Question 10 1 pts Assume that velocity is stable during a particular year. If the Fed increases the money supply by 2.5% and real GDP changes by 2.5%, the price level will change by: O approximately 21%. O approximately 4%. O approximately 10%. O approximately 2%. exactly 0%. Question 11 1 pts Suppose that the reserve requirement is 10%, and Jane Doe makes a deposit of $800,000 at her local bank. The maximum possible change in checkable deposits is and...
M i nyCLILION Perfect Competition Progress You are on question 4 of 12 Think about the short run average and marginal cost curves, which are shown as a function of the level of output being produced. Suppose a firm increases its output and finds that marginal cost is rising and average variable cost is falling. Then, it must be true that over that range of output: marginal cost is below average fixed cost marginal cost is above average variable cost...
ULU ILLUMId=21 QUESTION 8 When perfect price discrimination occurs, which one of the following statements is true? a. The outcome is more efficient than with single-price monopoly. b. Buyers buy more products than they want. c. The firm cannot set prices. d. The output is less than the one being produced by single-price monopoly. QUESTION 9 If a perfect price-discriminating monopoly faces the demand schedule shown in the table below, and if marginal cost is constant at $6, what is...
Question 10 (5 points) Which price index comprises the prices of all final goods and services produced within the economy? a) the consumer price index Ob) the GDP inflator O C) the GDP deflator d) the producer price index Question 11 (5 points) ✓ Saved What do we call an increase in the average level of prices in an economy?
QUESTION 3 Which of the following was not one of the determinants of how fast an economy can grow (as discussed in Chapter 11)? Human capital Actually, all of the above were determinants of economic growth as discussed in Chapter 11 The overall price level Technological change QUESTION 4 Which of the following was not discussed in class and in lecture as one of the factors that can inhibit a country's economic growth? Actually all three of the above were...
48. Which statement explains why free markets fail to produce public goods? Firms do not want to produce the good because they fear competition will drive the price down below costs. Consumers do not want to buy the good because the price is higher than the value of benefits they would receive. ° Consumers do not want to buy the product because each hopes that someone else will buy it and then all consumers will be able to have the...
Answer the question on the basis of the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and capital are $2 and $3, respectively. Production Techniques : Labor 4 3 2 Capital 2 3 Which technique is economically most efficient in producing A? Multiple Choice ON < Prev 20 of 50 !!! Which of the following is not a major category...
Question 10 1 pts Assume that velocity is stable during a particular year. If the Fed increases the money supply by 2.5% and real GDP changes by 2.5%, the price level will change by: O approximately 21%. O approximately 4%. O approximately 10%. O approximately 2%. exactly 0%. Question 11 1 pts Suppose that the reserve requirement is 10%, and Jane Doe makes a deposit of $800,000 at her local bank. The maximum possible change in checkable deposits is and...
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