Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

The herfindahl index for a pure monopolist is

09/11/2021 Client: muhammad11 Deadline: 2 Day

Question

1. Which of the following constitutes an implicit cost to the Johnston Manufacturing Company?

a. Payments of wages to its office workers.

b. Rent paid for the use of equipment owned by the Schultz Machinery Company.

c. Use of savings to pay operating expenses instead of generating interest income.

d. Economic profits resulting from current production.

2.Suppose that a business incurred implicit costs of $500,000 and explicit costs of $5 million in a specific year. If the firm sold 100,000 units of its output at $50 per unit, its accounting:

a. profits were $100,000 and its economic profits were zero.

b. losses were $500,000 and its economic losses were zero.

c. profits were $500,000 and its economic profits were $1 million.

d. profits were zero and its economic losses were $500,000.

3. Which of the following is a short-run adjustment?

a. A local bakery hires two additional bakers.

b. Six new firms enter the plastics industry.

c. The number of farms in the United States declines by 5 percent.

d. BMW constructs a new assembly plant in South Carolina.

4. The first, second, and third workers employed by a firm add 24, 18, and 9 units to total product respectively. Therefore, we can conclude that:

a. marginal product of the third worker is 9.

b. the third worker has to work with poorer-quality tools and raw materials.

c. the firm will not want to hire more than three workers.

d. the first worker puts forth more effort than the second and third workers.

5. In the diagram, the range of diminishing marginal returns is:

a. 0Q3.

b. 0Q2.

c. Q1Q2.

D . Q1Q3.

6. If you operated a small bakery, which of the following would be a variable cost in the short run?

a. Baking ovens.

b. Interest on business loans.

c. Annual lease payment for use of the building.

d. Baking supplies (flour, salt, etc.).

7. Economists would describe the U.S. automobile industry as:

a. purely competitive.

b. an oligopoly.

c. monopolistically competitive.

d. a pure monopoly.

8. In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis.
Refer to the information. For a purely competitive firm:

a. marginal revenue will graph as an upsloping line.

b. the demand curve will lie above the marginal revenue curve.

c. the marginal revenue curve will lie above the demand curve.

d. the demand and marginal revenue curves will coincide.

9. Refer to the short-run data. The profit-maximizing output for this firm is:

a. above 440 units.

b. 440 units.

c. 320 units.

d. 100 units.

10. Which of the following is nota valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?

a. Price must be at least equal to average total cost.

b. Price times quantity produced must be equal to or greater than total variable cost for some level of output or the firm will close down in the short run.

c. Price may be equal to, greater than, or less than average total cost.

d. Price must be equal to or greater than minimum average variable cost for the firm to continue producing.

11. On a per unit basis, economic profit can be determined as the difference between:

a. marginal revenue and product price.

b. product price and average total cost.

c. marginal revenue and marginal cost.

d. average fixed cost and product price.

12. Refer to the diagram. This firm will earn only a normal profit if product price is:

a.P1.

b.P2.

c.P3.

d. P4.

13. In a purely competitive industry:

a. there will be no economic profits in either the short run or the long run.

b. economic profits may persist in the long run if consumer demand is strong and stable.

c. there may be economic profits in the short run but not in the long run.

d. there may be economic profits in the long run but not in the short run.

14. We would expect an industry to expand if firms in that industry are:

a. earning normal profits.

b. earning economic profits.

c. breaking even.

d. earning accounting profits.

15. A purely competitive firm:

a. must earn a normal profit in the short run.

b. cannot earn economic profit in the long run.

c. may realize either economic profit or losses in the long run.

d. cannot earn economic profit in the short run.

16. A purely competitive firm is precluded from making economic profits in the long run because:

a. it is a "price taker."

b. its demand curve is perfectly elastic.

c. of unimpeded entry to the industry.

d. it produces a differentiated product.

17. Suppose losses cause industry X to contract and, as a result, the prices of relevant inputs decline. Industry X is:

a. a constant-cost industry.

b. a decreasing-cost industry.

c. an increasing-cost industry.

d. encountering X-inefficiency.

18. Refer to the diagram. Line (1) reflects a situation where resource prices:

a. decline as industry output expands.

b. increase as industry output expands.

c. remain constant as industry output expands.

d. are unaffected by the level of output in the industry.

19. Pure monopolists may obtain economic profits in the long run because:

a. of advertising.

b. marginal revenue is constant as sales increase.

c. of barriers to entry.

d. of rising average fixed costs.

20. Refer to the diagram. If price is reduced fromP1toP2, total revenue will:

a. increase by A - C.

b. increase by C - A.

c. decrease by A - C.

d. decrease by C - A.

21. With respect to the pure monopolist's demand curve, it can be said that:

a. the stronger the barriers to entry, the more elastic is the monopolist's demand curve.

b. price exceeds marginal revenue at all outputs greater than 1.

c. demand is perfectly inelastic.

d. marginal revenue equals price at all outputs.

22. A nondiscriminating profit-maximizing monopolist:

a. will never produce in the output range where marginal revenue is positive.

b. will never produce in the output range where demand is inelastic.

c. will never produce in the output range where demand is elastic.

d. may produce where demand is either elastic or inelastic, depending on the level of production costs.

23. A pure monopolist is selling six units at a price of $12. If the marginal revenue of the seventh unit is $5, then the:

a. price of the seventh unit is $10.

b. price of the seventh unit is $11.

c. price of the seventh unit is greater than $12.

d. firm's demand curve is perfectly elastic.

24. The MR = MC rule:

a. applies only to pure competition.

b. applies only to pure monopoly.

c. does not apply to pure monopoly because price exceeds marginal revenue.

d. applies both to pure monopoly and pure competition.

25. Monopolistic competition resembles pure competition because:

a. both industries emphasize nonprice competition.

b. in both instances firms will operate at the minimum point on their long-run average total cost curves.

c. both industries entail the production of differentiated products.

d. barriers to entry are either weak or nonexistent.

26. The larger the number of firms and the smaller the degree of product differentiation the:

a. greater the divergence between the demand and the marginal revenue curves of the monopolistically competitive firm.

b. larger will be the monopolistically competitive firm's fixed costs.

c. less elastic is the monopolistically competitive firm's demand curve.

d. more elastic is the monopolistically competitive firm's demand curve.

27. Which of the following is correctfor a monopolistically competitive firm in long-run equilibrium?

a. MC = ATC.

b. MC exceeds MR.

c. P exceeds minimum ATC.

d. P = MC.

28. For a monopolistically competitive firm in long-run equilibrium:

a. price will equal marginal cost.

b. price will equal average total cost.

c. marginal revenue will exceed marginal cost.

d. economic profits will be some positive amount.

29. Product variety is likely to be greater in:

a. monopolistic competition than in pure competition.

b. pure competition than in monopolistic competition.

c. homogeneous oligopoly than in monopolistic competition.

d. homogeneous oligopoly than in differentiated oligopoly.

30. The copper, aluminum, cement, and industrial alcohol industries are examples of:

a. interproduct competition.

b. homogeneous oligopoly.

c. monopolistic competition.

d. differentiated oligopoly.

31. As a general rule, oligopoly exists when the four-firm concentration ratio:

a. exceeds the Herfindahl index.

b. is less than the Herfindahl index.

c. is 40 percent or more.

d. is 15 percent or more.

32. Assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is:

a. 2,000.

b. 1,600.

c. 2,200.

d. 80.

33. Which of the following statements best illustrates the concept of derived demand?

a. As income goes up, the demand for farm products will increase by a smaller relative amount.

b. A decline in the price of margarine will reduce the demand for butter.

c. A decline in the demand for shoes will cause the demand for leather to decline.

d. When the price of gasoline goes up, the demand for motor oil will decline.

34. A firm will find it profitable to hire workers up to the point at which their:

a. marginal resource cost equals their wage rate.

b. wage rate equals product price.

c. MP is equal to their MRP.

d. marginal resource cost is equal to their MRP.

35. Other things equal, the resource demand curve of an imperfectly competitive seller will:

a. lie below its marginal revenue product curve.

b. be subject to increasing marginal productivity.

c. be less elastic than that of a purely competitive seller.

d. be more elastic than that of a purely competitive seller.

36. Refer to the graph. A move from b to aalong labor demand curveD1would result from:

a. a decrease in the price of a substitute resource, assuming that the substitution effect exceeds the output effect.

b. an increase in the wage rate.

c. a decrease in the wage rate.

d. an increase in the demand for the product that this labor is helping to produce.

37. If resources A and B are complementary and employed in fixed proportions:

a. a change in the price of A will have no effect on the quantity of B employed.

b. an increase in the price of A may either increase or decrease the demand for B.

c. an increase in the price of A will increase the demand for B.

d. an increase in the price of A will decrease the demand for B.

38. Refer to the given data. For the $16 to $14 range of wage rates, labor demand is:

a. perfectly elastic.

b. elastic.

c. perfectly inelastic.

d. inelastic.

39. A firm is hiring resources X, Y, and Z in the profit-maximizing amounts when:

a. MRPx/Px equals MRPy/Py equals MRPz/Pz equals 1.

b. the sum of the MRPs of the three resources is at a minimum.

c. the marginal revenue productivity of all three resources is the same.

d. the marginal revenue product of the last dollar spent on each of the three resources is the same.

40. Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is PL and that of capital is PC. The marginal product of labor is MPL and that of capital is MPC. The firm sells its product competitively at a price of PX.
Refer to the given information. If MPC/PC> MPL/PL, the firm:

a. may be maximizing profits, but it is not minimizing costs.

b. may be minimizing costs, but it is not maximizing profits.

c. is neither minimizing costs nor maximizing profits.

d. is minimizing costs and maximizing profits.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Quick N Quality
Best Coursework Help
Top Academic Guru
Financial Hub
Instant Assignment Writer
Professional Coursework Help
Writer Writer Name Offer Chat
Quick N Quality

ONLINE

Quick N Quality

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$40 Chat With Writer
Best Coursework Help

ONLINE

Best Coursework Help

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$19 Chat With Writer
Top Academic Guru

ONLINE

Top Academic Guru

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$45 Chat With Writer
Financial Hub

ONLINE

Financial Hub

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$47 Chat With Writer
Instant Assignment Writer

ONLINE

Instant Assignment Writer

This project is my strength and I can fulfill your requirements properly within your given deadline. I always give plagiarism-free work to my clients at very competitive prices.

$40 Chat With Writer
Professional Coursework Help

ONLINE

Professional Coursework Help

I will be delighted to work on your project. As an experienced writer, I can provide you top quality, well researched, concise and error-free work within your provided deadline at very reasonable prices.

$29 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

System call parameter passing - Is mass marketing dead debate - Quantitative non experimental research design - Cuando vimos en la calle nos besamos. - Lg hi macs white granite - Data analysis for quality improvement - Excerpt from food how altered essay - Hris needs analysis - 5 act structure tv - Love after love meaning - Starbucks duetto visa - Need tomorrow - University of bonn plant sciences - Raritan valley community college programs - The great gatsby argumentative essay - Dr dawoud rowais flemington - Www bakertilly co uk - Biozone unit 1 and 2 answers pdf free - Avg cloudcare partner portal - Difference between west egg and east egg - East farleigh primary school - Ntcp framework for project risk management - Bronchospastic pulmonary disease icd 10 - Looking at movies 4th edition chapter 1 - Nas523 rivet code chart - Activity diagram for registration - +61 3 9087 0031 - Human brain clay model - Naplan should be abolished - Imagitarium automatic fish feeder instructions - Lewis dot structure formal charge - 85 area code country - 75mm joist hangers screwfix - Boc healthcare entonox training - Tayside sexual health clinic - Proportional parts in triangles and parallel lines - Brisbane city council bimap - Diels alder reaction lab report discussion - Hezbollah and Hamas Case study - What happened at city group(A) -a case study by Harvard business school- - Unit3Disc1 Due 10.27.2020 - Arrhenius vs bronsted lowry acids and bases - Departmental impact on reimbursement - Ias 8 change in accounting policy - General purpose financial statements are the product of - Aminjarrinja enterprises aboriginal corporation - Prospectus Extraction - System analysis and design final project - Define the key concepts and principles of assessment - Astable multivibrator using op amp - Milwaukee carpenters union local 344 pay scale - Units of time lesson 12.8 answers - Mathsmadeeasy a level biology - Doritos man's best friend commercial - The 280 kg 6 m wide rectangular gate shown - Alice in wonderland printable worksheets - Too swift arrives as tardy as too slow meaning - Essay 1 page - Persepolis marjane satrapi themes - Diana kendall framing class vicarious living and conspicuous consumption pdf - Data mining - The four major enterprise applications are - Topographic map practice worksheet - Writing assignment 2 - Report Writing Paper - Direct and inverse proportion word problems - In praise of the f word - Iec 309 male plug - Enchanted learning solar system - Falls from a height are described as - Principles of real estate 2 homework answers - Design your own periodic table project ideas - How much is a 45kg gas bottle from elgas - Response to an inconvenient truth - What are 2 properties of water - Creating value in a dynamic business environment - Microsoft and Google team up to make windows Spellcheck for Chrome and Edge - The holy lamb on the throne - Ipecs phone system voicemail - It's all about the climb - How is hmo paid or financed - Reflection on newspaper article - How all five senses impact perception powerpoint - A view from the bridge cherokee paul mcdonald analysis - Corporate social responsibility: OD Pactitioner - Public Health outbreak and disaster management - Is banking tertiary or quaternary - Botany bay school excursion - What determines reliability and creditability for good presentations - Dichotomous keys are constructed based on - Administration and Supervision in Criminal Justice - Chapter 6 - A life insurance company sells a term - Tableau server domain name - Maintenance personnel job description - Serial podcast answers - LeaderAsChangeAgent_Assessment1 - April fools day poem by kenn nesbitt - Tower hamlets visitor scratch cards - Types of earthing ppt - I prayed for you today poem donna fargo