HIRE QUALIFIED ACADEMIC WRITERS
QUESTION 1Both a perfectly competitive firm and a monopolist choose output to maximise profits where:marginal cost equals pricetotal revenue equals total costmarginal cost equals marginal revenueaverage cost equals pricemarginal revenue equals price1 points QUESTION 2In the case of a positive externality, market price is ____, output is ____, and the government should impose a ____ to rectify the situationtoo low; too high; taxtoo high; too low; subsidytoo high; too high; taxtoo low; too low; subsidytoo low; too high; social cost1 points QUESTION 3Changes in real gross domestic product through time will differ from changes in nominal gross domestic product by taking account of:price changesdepreciationincreases in productive capacitythe business cycleexports and imports1 points QUESTION 4If there are negative externalities associated with the production of a good and the government imposes a policy that forces producers to pay these costs, the equilibrium price:will rise and the equilibrium quantity will fallwill fall and the equilibrium quantity will increaseand the quantity will both falland the quantity will both increasewill rise but the change in quantity will be indeterminate1 points QUESTION 5Each of the following would be included in GDP under the final goods approach except:the DVD you purchased from Amazoncomthe amount you pay your lawyerthe value of an MP3 song copied from your roommatethe CD you bought at the music storethe purchase of a song from iTunes1 points QUESTION 6The pure profit generated by a monopolist is also sometimes called:excess profitwindfall profitaccounting profitmonopoly rentmonopoly gain1 points QUESTION 7The total dollar value of all goods and services produced, categorised by their ultimate users, yields gross domestic product calculated according to:the final goods approachthe individuals’ income approachthe income approachthe value-added approachthe output approach1 points QUESTION 8In the case of a negative externality, market price is ____ and output is ____too high; too lowtoo low; too lowtoo low; too hightoo high; too highzero; too high1 points QUESTION 9In an industry of perfectly competitive firms, the extra return that a monopolist earns because it can charge a higher price and restrict output relative to a perfectly competitive firm is called:accounting profiteconomic profitpure profitwindfall profitexcess profit1 points QUESTION 10A monopolist can sell ten units at $14 per unit and nine units at $16 per unit The marginal revenue associated with the tenth unit is:-$16-$4-$2$2$41 points QUESTION 11In the case of a negative externality, market price is ____, output is ____, and the government should impose a ____ to rectify the situationtoo low; too high; taxtoo high; too low; subsidytoo high; too high; taxtoo low; too low; subsidytoo low; too high; social cost1 points QUESTION 12The discrepancy between a monopolist’s marginal revenue and its price will be larger, the:larger the price elasticity of demandlarger the price elasticity of supplysmaller the response from its competitorssmaller the price elasticity of demandsmaller the price elasticity of supply1 points QUESTION 13Natural monopolies exist for several reasons Which of the following is not one of them?Declining average costs relative to market sizeRedundancy and inefficiency of two firms in the same marketEconomies of scaleThe first firm’s ability to undercut rivalsGovernment licensure preventing rival upstarts1 points QUESTION 14For a monopoly, marginal revenue is less than price because:to sell extra units, it must lower its price on all unitsit has no control over priceit can sell as much as it wants at the market priceit produces a very small percentage of total outputthere are a large number of firms in the industry1 points QUESTION 15All of the following, except one, describe both monopoly and perfect competition Which does not?Both try to maximise profitsBoth reduce output if marginal cost exceeds marginal revenueBoth determine output by equating marginal revenue and marginal costBoth increase output if marginal revenue exceeds marginal costBoth face a perfectly elastic demand curve1 points QUESTION 16A monopoly faces a demand curve for which ____; a perfectly competitive firm faces a demand curve for which ____marginal revenue equals price; marginal revenue is less than pricemarginal revenue is less than price; marginal revenue is less than pricemarginal revenue equals price; marginal revenue equals pricemarginal revenue is less than price; marginal revenue equals pricemarginal revenue is more than price; marginal revenue equals price1 points QUESTION 17Downturns in real gross domestic product are called ____, while severe downturns are known as ____depressions; contractionscontractions; recessionsdepressions; recessionsrecessions; depressionsrecessions; contractions1 points QUESTION 18All of the following, except one, are information problems creating a potential barrier to entry Which is not?Research that confers technological advantageDifferences in information on products sold by different firmsCosts of entering existing marketsEconomies of scaleBrand-name recognition1 points QUESTION 19Potential GDP may differ from real GDP for any of the following reasons except:workers who are not fully employedthat the economy produces more than can be normally sustainedinefficiently operated plants and equipmentthat all productive resources are fully employedthat some workers take on a second job1 points QUESTION 20If nominal gross domestic product rises, in percentage terms, ____ the rise in prices, this indicates ____ real gross domestic productmore than; a decrease inless than; an increase inmore than; no change inless than; no change inmore than; an increase in1 points QUESTION 21For a monopolist, marginal revenue is less than price, which means that profit maximisation will result in ____ also being less than priceaverage revenuemarginal costtotal revenuetotal costaverage cost1 points QUESTION 22In the case of a negative externality:the private market does not produce enough of the goodefficiency requires that the government impose a subsidythe market price is below the efficient pricemarket price reflects the social costs of productionthe market price is above the efficient price1 points QUESTION 23A monopolist can sell ten units at $15 per unit and nine units at $16 per unit The marginal revenue associated with the tenth unit is:$150$144$15$6$11 points QUESTION 24The sum of all wage, interest, and indirect tax pay made by firms, plus the firms’ profits, yields gross domestic product calculated according to:the income approachthe final goods approachthe individuals’ income approachthe value-added approachthe output approach1 points QUESTION 25Several factors lead to the understatement of actual output given our current measurement methods for GDP Which of the following does not?Improvements in the quality of goods and servicesAutomated delivery of goods and servicesPresence of nonmarket goods and servicesThe legalisation of gamblingIncreased productivity in bureaucratic activities1 points QUESTION 26Let P denote price, MR denote marginal revenue, and MC denote marginal cost A monopolist sets ____ to maximise profit For a monopolist, it is always the case that ____ As a result, the monopolist maximises profit where ____MR > MC; MR MR = MC; MR = P; MC = PMR = MC; MR MR > MC; MR = P; MC MR < MC; MR > P; MC > P1 points QUESTION 27In the case of a negative externality:the private market does not produce enough of the goodmarket price reflects the social costs of productionefficiency requires that the government impose a subsidymarket price reflects only the private costs of productionthe market price is above the efficient price1 points QUESTION 28A profit-maximising monopolist finds that at the present level of output, marginal revenue equals $60 and marginal cost is $40 The price for this output has been determined from the demand curve What action should the monopolist take to increase profits?Reduce price and and leave output unchangedIncrease output and reduce priceReduce price and outputIncrease price and outputIncrease price and reduce output1 points QUESTION 29In the case of a positive externality:the private market produces too much of the goodthe market price is below the efficient priceefficiency requires that the government impose a taxthe market price is above the efficient pricemarket price reflects the social costs of production1 points QUESTION 30In the case of a negative externality:the private market does not produce enough of the goodefficiency requires that the government impose a taxmarket price reflects the social costs of productionefficiency requires that the government impose a subsidythe market price is above the efficient price
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