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Microeconomics
Explain using properly labelled diagrams, why a perfectly competitive firm will earn only normal profit in the long-run
Microeconomics
Given the demand function
Qd=650-5p-p2(p square) where p= 10
Determine the price elasticity of demand.
Qd=650-5p-p2(p square) where p= 10
Determine the price elasticity of demand.
Microeconomics
A monopolistic competitor is like a perfectly competitive firm in the long run because:
Microeconomics
A silver mine can be purchased for $1,500,000. On the basis of estimated production, an annual net income of $389,000 is foreseen for the next 15 years. After 15 years, the mine will probably be worthless. What annual IRR is in prospect?
Microeconomics
If a firm in a perfectly competitive industry raises its price above market price:
a) Sales will fall slightly.
b) Sales will stay the same.
c) Sales will drop to zero.
d) All other firms in the industry will follow.
a) Sales will fall slightly.
b) Sales will stay the same.
c) Sales will drop to zero.
d) All other firms in the industry will follow.
Microeconomics
Which one of the following is NOT true of a monopolist?
a) A monopolist is protected from competition.
b) A monopolist can earn economic profits.
c) A monopolist is a price maker.
d) A monopolist can sell as much as he/she wants to at any price.
a) A monopolist is protected from competition.
b) A monopolist can earn economic profits.
c) A monopolist is a price maker.
d) A monopolist can sell as much as he/she wants to at any price.
Microeconomics
The vertical distance between the total cost and the total variable cost curves:
a) Decreases as output increases.
b) Increases as output increases.
c) Is equal to average fixed cost.
d) Is equal to total fixed cost.
a) Decreases as output increases.
b) Increases as output increases.
c) Is equal to average fixed cost.
d) Is equal to total fixed cost.
Microeconomics
Nonjabulo thinks that McDonald’s hamburgers are the best – much better than Steers’ – while Anne cannot tell the difference:
a) Anne’s demand for McDonald’s hamburgers is likely to be more price elastic than Nonjabulo’s.
b) Nonjabulo’s demand for McDonald’s hamburgers is likely to be more price elastic than Anne’s.
c) Anne’s demand for all hamburgers is less price elastic than Nonjabulo’s.
d) Nonjabulo’s demand for all hamburgers is more price elastic than Anne’s
a) Anne’s demand for McDonald’s hamburgers is likely to be more price elastic than Nonjabulo’s.
b) Nonjabulo’s demand for McDonald’s hamburgers is likely to be more price elastic than Anne’s.
c) Anne’s demand for all hamburgers is less price elastic than Nonjabulo’s.
d) Nonjabulo’s demand for all hamburgers is more price elastic than Anne’s
Microeconomics
If the cross elasticity of demand between tablets and smart phones is 2,0, this implies that these goods are:
a) Luxuries.
b) Complements.
c) Necessities.
d) Substitutes.
a) Luxuries.
b) Complements.
c) Necessities.
d) Substitutes.
Microeconomics
In a prisoner’s dilemma with prisoners A and B, if they both confess, A gets 5 years and B gets 8
years. If both remain silent, A gets 2 years and B goes free. If one confesses and the other does
not, the one who confesses gets 1 year and the other gets 15 years. Which statement is TRUE of
this case?
years. If both remain silent, A gets 2 years and B goes free. If one confesses and the other does
not, the one who confesses gets 1 year and the other gets 15 years. Which statement is TRUE of
this case?
