Economics 1 - Bakersfield College
... b. he made $10,000 more running this business than he would have made doing his next best thing. c. he actually lost money, all things considered. d. He would have made $10,000 dollars doing something else. 32. According to the average-marginal rule, if the current average cost of making radios is $ ...
... b. he made $10,000 more running this business than he would have made doing his next best thing. c. he actually lost money, all things considered. d. He would have made $10,000 dollars doing something else. 32. According to the average-marginal rule, if the current average cost of making radios is $ ...
multiple choice answers
... 12. When an industry produces negative externalities (negative external effects), the social cost of production is higher than the private marginal cost. Private firms concentrate on the private costs and so do not allocate resources in a socially efficient way. As a result, a private market, if le ...
... 12. When an industry produces negative externalities (negative external effects), the social cost of production is higher than the private marginal cost. Private firms concentrate on the private costs and so do not allocate resources in a socially efficient way. As a result, a private market, if le ...
Test answers
... 12. When an industry produces negative externalities (negative external effects), the social cost of production is higher than the private marginal cost. Private firms concentrate on the private costs and so do not allocate resources in a socially efficient way. As a result, a private market, if le ...
... 12. When an industry produces negative externalities (negative external effects), the social cost of production is higher than the private marginal cost. Private firms concentrate on the private costs and so do not allocate resources in a socially efficient way. As a result, a private market, if le ...
Microeconomics I
... 18. Economists define a market to be competitive when the firms A) spend large amounts of money on advertising to lure customers away from the competition. B) watch each other's behavior closely. C) are price takers. D) All of the above. 19. If an economist states that not enough of a good is being ...
... 18. Economists define a market to be competitive when the firms A) spend large amounts of money on advertising to lure customers away from the competition. B) watch each other's behavior closely. C) are price takers. D) All of the above. 19. If an economist states that not enough of a good is being ...
Bliss Point Studies
... A friend of yours is considering two cell-phone service providers.A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend’s monthly demand for minutes of calling is gi ...
... A friend of yours is considering two cell-phone service providers.A charges $120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges $1 per minute for calls. Your friend’s monthly demand for minutes of calling is gi ...
Marketing - cungeheier
... – Oligopoly suffers from the same source and type of inefficiency as monopoly. – Because oligopoly is inefficient, antitrust laws and regulations are used to try to reduce market power and move the outcome closer to that of competition and efficiency. (Bade 416) ...
... – Oligopoly suffers from the same source and type of inefficiency as monopoly. – Because oligopoly is inefficient, antitrust laws and regulations are used to try to reduce market power and move the outcome closer to that of competition and efficiency. (Bade 416) ...
Sample Exam, May 2015, Section 1
... 1A. Tom spends all of his income on two goods: beer (B) and pizza slices (P). He considers beer and pizza to be substitutes for one another. Two pizza slices give him the same utility as one bottle of beer. Beer costs $6/bottle and pizza slices are $2.00 each at Flames Eatery. Tom spends $60 per wee ...
... 1A. Tom spends all of his income on two goods: beer (B) and pizza slices (P). He considers beer and pizza to be substitutes for one another. Two pizza slices give him the same utility as one bottle of beer. Beer costs $6/bottle and pizza slices are $2.00 each at Flames Eatery. Tom spends $60 per wee ...
Equilibrium
... quantity supplied. There are shortages (of Qd - Qs). At this price there is not enough quantity supplied to satisfy the quantity demanded. The excess demand tends to push prices up. ...
... quantity supplied. There are shortages (of Qd - Qs). At this price there is not enough quantity supplied to satisfy the quantity demanded. The excess demand tends to push prices up. ...
Two
... c. that arises from the secondary effects of an activity. d. that arises from a small increase in an activity. 11. Pam and Jane produce apples and oranges. They can gain from exchange a. unless one can produce more of both goods. b. if each specializes in the good for which she has the higher opport ...
... c. that arises from the secondary effects of an activity. d. that arises from a small increase in an activity. 11. Pam and Jane produce apples and oranges. They can gain from exchange a. unless one can produce more of both goods. b. if each specializes in the good for which she has the higher opport ...
Second Midterm
... a. Firms in this market are currently earning negative profits. b. Firms in this market are currently earning positive profits. c. Firms in this market are currently earning zero profits. d. We cannot determine the profits earned by firms in this market without the market demand curve. ...
... a. Firms in this market are currently earning negative profits. b. Firms in this market are currently earning positive profits. c. Firms in this market are currently earning zero profits. d. We cannot determine the profits earned by firms in this market without the market demand curve. ...
CHAPTER 10: Costs 131
... positively sloped line with a slope equal to the price. The cost functions of the firm will correspond to the cost relationships developed in Chapter 10. Viewed in terms of the total functions, the firm will maximize profit where the total revenue exceeds the total cost by the greatest amount. This ...
... positively sloped line with a slope equal to the price. The cost functions of the firm will correspond to the cost relationships developed in Chapter 10. Viewed in terms of the total functions, the firm will maximize profit where the total revenue exceeds the total cost by the greatest amount. This ...
Unit 2
... and completely original. Photocopies and/or computer printouts will not be allowed. Do this by hand, and do your own work. Failure to follow these rules will result in an immediate, and non-negotiable, failure (ZERO) on this quiz. ALL NOTECARDS WILL BE COLLECTED AND STAPLED TO YOUR QUIZ. CONCEPTS AN ...
... and completely original. Photocopies and/or computer printouts will not be allowed. Do this by hand, and do your own work. Failure to follow these rules will result in an immediate, and non-negotiable, failure (ZERO) on this quiz. ALL NOTECARDS WILL BE COLLECTED AND STAPLED TO YOUR QUIZ. CONCEPTS AN ...
Price competition - The Economics Network
... • Marginal cost is 3 and demand is 15-p. • There are two firms A and B. Customers buy from the lowest price firm. Assume if both firms charge the same price customers go to the closest firm. • What are profits if both charge 9? • Without price matching policies, what happens if firm A charges a pric ...
... • Marginal cost is 3 and demand is 15-p. • There are two firms A and B. Customers buy from the lowest price firm. Assume if both firms charge the same price customers go to the closest firm. • What are profits if both charge 9? • Without price matching policies, what happens if firm A charges a pric ...
Handout with solution
... Scarcity is the result of unlimited wants by economic actors, but limited resources to fulfill those wants. As a result, economic actors face trade-offs in their decision-making. In considering the production decisions facing firms, a useful tool for illustrating these trade-offs is the production p ...
... Scarcity is the result of unlimited wants by economic actors, but limited resources to fulfill those wants. As a result, economic actors face trade-offs in their decision-making. In considering the production decisions facing firms, a useful tool for illustrating these trade-offs is the production p ...
Prices and Markets
... • The reason is because of changes in supply and/or demand • This happens in a market • A market is many things, but essentially it is where suppliers and demanders meet ...
... • The reason is because of changes in supply and/or demand • This happens in a market • A market is many things, but essentially it is where suppliers and demanders meet ...
CHAPTER 3 INNOVATION, MARKETS AND INDUSTRIAL CHANGE OBJECTIVES
... • Industry life cycle also examines how these mechanisms affect changes in the industry structure. • Industry structure: the characteristics of an industry, such as: – the number of firms operating in it – the distribution of power between them – how easy for new firms to enter. • The model of the i ...
... • Industry life cycle also examines how these mechanisms affect changes in the industry structure. • Industry structure: the characteristics of an industry, such as: – the number of firms operating in it – the distribution of power between them – how easy for new firms to enter. • The model of the i ...
profit theory
... and marginal revenue situation for a firm with a perfectly elastic demand curve. The MC curve cuts the MR curve at two points. The first point where MC=MR, q1, is the point of profit minimisation (loss maximisation). The firm has made a loss on every unit produced up to this level of output, because ...
... and marginal revenue situation for a firm with a perfectly elastic demand curve. The MC curve cuts the MR curve at two points. The first point where MC=MR, q1, is the point of profit minimisation (loss maximisation). The firm has made a loss on every unit produced up to this level of output, because ...
Microeconomic Concepts Describe how households, businesses
... Entrepreneurs are willing to risk their resources in order to sell them for financial gain or profit, and are successful when providing goods and services valued by consumers. Successful entrepreneurs are willing to assume risk, have unique skills, discipline to work long and hard to earn income, le ...
... Entrepreneurs are willing to risk their resources in order to sell them for financial gain or profit, and are successful when providing goods and services valued by consumers. Successful entrepreneurs are willing to assume risk, have unique skills, discipline to work long and hard to earn income, le ...
EOCT Study Guide
... Entrepreneurs are willing to risk their resources in order to sell them for financial gain or profit, and are successful when providing goods and services valued by consumers. Successful entrepreneurs are willing to assume risk, have unique skills, discipline to work long and hard to earn income, le ...
... Entrepreneurs are willing to risk their resources in order to sell them for financial gain or profit, and are successful when providing goods and services valued by consumers. Successful entrepreneurs are willing to assume risk, have unique skills, discipline to work long and hard to earn income, le ...
Lahore School of Economics
... where PA = adult price, PCS = children’s/senior citizen’s price, QA = daily quantity of adults, and QCS = daily quantity of children and senior citizens. Crowding is a major problem at the zoo, so the managers consider marginal cost to be 5 + [(QA + QCS)/10] a. If the zoo decides to price discrimina ...
... where PA = adult price, PCS = children’s/senior citizen’s price, QA = daily quantity of adults, and QCS = daily quantity of children and senior citizens. Crowding is a major problem at the zoo, so the managers consider marginal cost to be 5 + [(QA + QCS)/10] a. If the zoo decides to price discrimina ...