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Question
In the kinked demand curve model, the demand curve is ________ for price increases and ________ for price decreases.
A) unit elastic; relatively elastic
B) relatively inelastic; relatively elastic
C) relatively elastic; relatively inelastic
D) perfectly elastic; perfectly inelastic
Answer
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Related questions
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A) moral hazard.
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C) adverse selection.
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The Prisoner's Dilemma is an example of
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C) a non-zero sum, non-cooperative game with a dominant strategy.
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When mark-up equals 50% and AC = MC, then demand elasticity will be
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If a product which costs $8 is sold at $10, the profit margin is
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Q:
The following are possible examples of price discrimination except
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Q:
Dominant price leadership exists when
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Q:
Prices under an ideal cartel situation will be equal to
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Q:
All of the following are conditions which are favorable to the formation of cartels except
A) the existence of a small number of firms.
B) geographic proximity of firms.
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Q:
Porter's "Five Forces Model" is based on
A) the laws of supply and demand.
B) the law of diminishing returns.
C) the Structure-Conduct-Performance model.
D) the key factors affecting demand.
Q:
The main difference between perfect competition and monopolistic competition is
A) the number of sellers in the market.
B) the ease of exit from the market.
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Q:
When the slope of the total revenue curve is equal to the slope of the total cost curve
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Q:
A monopoly will usually produce
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Q:
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A) P = MC
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When MR = MC
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D) total profit is zero.
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Which of the following correctly completes this statement? The monopolist's marginal revenue
A) will be greater than price.
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Q:
A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
A) $30.
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Q:
In economic analysis, any amount of profit earned above zero is considered "above normal" because
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Which is a required characteristic of a perfectly competitive industry?
A) There are few firms so that none can influence market price.
B) Products are highly differentiated.
C) Barriers to entry are high.
D) None of the above
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A) automobile industry
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Q:
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A) economies of scale are taking effect.
B) repetition of various production tasks cause unit costs to decrease.
C) workers must learn new skills in order to improve.
D) it takes time to learn a new skill.
Q:
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A) is really no different from a marginal cost curve.
B) calculates average cost at a particular point in time.
C) shows the decrease in unit cost as more of the same product is produced over time.
D) None of the above
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Which of the following relationships implies that a firm's short-run cost function is linear?
A) MC = AC
B) MC = AVC
C) AC = AFC + AVC
D) MC > AC
Q:
When a firm experiences increasing returns to scale
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B) its AFC will increase.
C) its AC will increase.
D) its AC will decrease.
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The marginal cost will intersect the average variable cost curve
A) when the average variable cost curve is rising.
B) where average variable cost curve equals price.
C) at the minimum point of the average variable cost curve.
D) The two will never intersect.
Q:
As the U.S. population ages, the structure of the demand for food products will change with
A) an increase in the demand for red meat products and a decrease in the demand for fish and poultry.
B) an increase in the demand for dairy products and a decrease in the demand for red meat.
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D) an increase in the demand for beverages and drinks and a decrease in the demand for solid food.
Q:
The Coase theorem states that, in the presence of cost externalities, an optimal equilibrium can be attained
A) with government taxation.
B) by prohibiting production.
C) by correctly defining property rights and through negotiation between the parties.
D) None of the above