Reference no: EM131096608
1- All of the following statements apply to a purely competitive market in the long run, except:
A- In the long run, all inputs are variable in quantity.
B- Firms can expand their plant capacities in the long run.
C- Total fixed costs remain constant even when output expands in the long run.
D- Firms may enter or leave the industry in the long run.
2- Which of the following is true of normal profits?
A- They are necessary to keep a firm in the industry in the long run
B- They are zero under pure competition in the long run
C- They are excluded from a firm's costs of production
D- They are what attract other firms to enter an industry
3- -The long-run supply curve would be perfectly elastic when:
A- An increase in demand does not cause a change in product price
B- An increase in demand causes an increase in product price
C- A decrease in demand causes an increase in short-run supply
D- A decrease in demand causes an increase in product price
4- What happens in a decreasing-cost industry when some firms leave and the industry's output contracts?
A- The average cost will increase
B- The average cost will decrease
C- The total cost will decrease
D- The product price will decrease
5- Which of the following statements about a competitive firm is correct?
A-To maximize profits a competitive firm should produce at that output at which total revenue is greatest
B- In long-run equilibrium a competitive firm will produce at the point of minimum average costs
C- A competitive firm will produce in the short run so long as total receipts are sufficient to cover total fixed costs
D-A competitive firm will close down in the short run whenever price is less than the minimum attainable average total cost
6- When there is allocative efficiency in a purely competitive market for a product, the minimum price producers are willing to accept is:
A- Less than marginal benefit
B- Greater than marginal cost
C- Equal to the amount of efficiency or deadweight losses
D- Equal to the maximum price consumers are willing to pay
7- A patent is the legal right granted to a firm that allows it to:
A- Make copies of other firm's products
B- Be the sole buyer of a particular product or resource
C- Sell its new product exclusively for a set number of years
D- Be the exclusive distributor of a particular imported product
|
Treasury bills usually less than federal funds rate
: Explain carefully why interest rates on each of the following short-term financial instruments will be closely tied to the level federal funds rate: short-term bank CDs, short-term Treasury bills, short-term commercial paper. Why is the yield on shor..
|
|
What is the profit function of each firm
: Suppose that inverse demand is given by p(Q) = a-bQ, where Q is total quantity supplied in the market. There are two firms in the market, each with a cost function of c(q) = cq. What is the profit function of each firm? Compare the output and price t..
|
|
Reverses the sequence of characters within a string
: Let Rev be the operator that reverses the sequence of characters within a string. For example, Rev(abc) = cba. Let R be any regular expression. Rev® is the set of strings denoted by R, with each string reversed. Is Rev(R) a regular set? Why?
|
|
Federal reserve policy affect the bond supply equation
: The demand curve and supply curve for one-year discount bonds with a face value of $1,000 are represented by the following equations: Bd : Price = -0.6 Quantity + 1140 Bs : Price = Quantity + 700 Suppose that, as a result of monetary policy actions, ..
|
|
Long-run supply curve would be perfectly elastic when
: All of the following statements apply to a purely competitive market in the long run, except: Which of the following is true of normal profits? The long-run supply curve would be perfectly elastic when: Which of the following statements about a compe..
|
|
The regular set defined by e
: Assume e is any regular expression. e represents the set of all strings not in the regular set defined by e. Show that e is a regular set. Hint: If e is a regular expression, there is an FA that recognizes the set defined by e. Transform this FA ..
|
|
Major boon for montgomery economy
: Suppose Mayor Strange comes to you and asks you whether or not Montgomery should bid for 2024 Olympics. He says that a group of economic consultants has said it will be a major boon for Montgomery’s economy. What kind of things did they likely claim ..
|
|
Question regarding the looking ahead
: As a public administrator, identify one or two area(s) of public administration you think will have the greatest effect on the U.S. in the next five years. Justify your selections with two to three reason
|
|
State and explain the law of diminishing returns
: State and explain the law of diminishing returns. How might this law apply if you were studying for an examination for an online course? What is the difference between explicit and implicit costs? Which of the costs is most closely associated with op..
|