The purpose of making assumptions in economic model building is to $50,000;$25,000 1400; B simplify the model while keeping important details Marginal rate of substitution is equal to - 1.73. Consumer more X less Y

simplify the model while keeping important details

If an important assumption is omitted from an economic model the model's predictions may be inaccurate the two goods are substitutes 1400; B he would give up 5 salads to get the next pizza

the model's predictions may be inaccurate

Which of the following is an example of a normative statement? A market Returns to scale = 1.47; increasing returns to scale $50,000;$25,000 To make the good available to more people, a lower price should be set

To make the good available to more people, a lower price should be set

Which of the following statements is true? local residents likely wouldn't go to the park at prices disneyland can charge for tourists, which would reduce disneylands profits Human resource managers design compensation systems to encourage employees to work hard then a 1% decrease in price leads to a rise in quantity of greater than 1% then it changes significantly in response to a price change

Human resource managers design compensation systems to encourage employees to work hard

Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as all of the above Society faces trade-offs because of the average total cost falls as production increases a leftward shift of the demand curve for CDs

a leftward shift of the demand curve for CDs

The demand curve for soda pop to shift to the left The implementation of the assembly line is an example how Recently many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes, we would expect Which of the following is an example of a normative statement? If the utility function (U) between food (F) and clothing (C) can be represented as U = Sqaure root of F times C, marginal utility of food

Recently many cities have attempted to pass laws taxing the sale of sugary drinks such as soda pop. If one of these laws passes, we would expect

that individuals have different valuations of the same product One way to explain the convexity of isoquants is to say that A downward sloping demand curve indicates A small business owner earns $60,000 in revenue annually. The explicit annual costs equal $10,000. The owner could work for someone else and earn $25,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________. In deciding whether to operate in the short run, the firm must consider the relationship between price and

A downward sloping demand curve indicates

The price of the product An isoquant represents levels of capital and labor that Consider the following production function: q= 100L^.8K^.4 Currently the wage rate (w) is $3.00 and the price of captial (r) is $1.00 If the firm is using units of capital in production, how much labor should be employed to minimize costs? You purchase a pizza oven that is expected to last 10 years for $15,000. How do you account for the economic cost of the oven? Which of the following would NOT change demand

Which of the following would NOT change demand

Monopoly and Market Pricing Strategies

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Economics - Managerial Economics

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Society faces trade-offs because of

A market

The purpose of making assumptions in economic model building is to

If an important assumption is omitted from an economic model

Which of the following is an example of a normative statement?

Which of the following statements is true?

Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as

The demand curve for soda pop to shift to the left

that individuals have different valuations of the same product

The price of the product

as a group, consumers are willing and able to pay less for the product

an increase in quantity supplied

120

-1.64

-29.89%

-0.087

-0.80

then it changes significantly in response to a price change

then a 1% decrease in price leads to a rise in quantity of greater than 1%

positive: increases

the two goods are substitutes

R^2 statistic

estimated coefficient; true coefficient

the consumer can rank all possible consumption bundles

increases as one obtains more clothing

he would give up 5 salads to get the next pizza

-50

the slope of the budget constraint

-px/py

all of the above

All of the above

consumers have diminishing marginal rate of substitution

1400; B

MRT= -5

price of good B:3.50 units of good B: 71.43

his preferences will be inconsistent

Marginal rate of substitution is equal to - 1.73. Consumer more X less Y

is considered "fixed- proportion"

Calculate the value of renting the oven to someone else and use that as your cost

Returns to scale = 1.47; increasing returns to scale

yield the same level of output

will be more likely to vertically integrate to avoid paying ink sales taxes

as labor increases and capital decreases MPL falls while MPK rises

The MPK of the next unit of capital added equals 12

$71,000

33.33 units

$50,000;$25,000

the maximum output it expect to produce with a given mix of inputs

All of the above

$45,000

positive; economies

1. 87.92 2. 148.75 3. 6

q=40; pie=$4400

only firms that maximize profits survive in highly competitive markets

technical efficiency

Total product of labor: q=2L Average product of labor: q/L=2 Marginal product of labor: dq/dL = 2

In the short run, as more labor is hired, output increases at a diminishing rate

MPL is falling

long- run average cost that are lower that short- run average costs

shut down because revenue of $1,000 is less than avoidable costs

average variable costs

q=1000 MPL=5 MPK=5

changes in the organization of production improve productivity

$7,500

Maximize profits if related media exposure is more effective than advertising

strategic corporate social responsibility

A competitive firm maximizes profits by producing at the quantity where marginal revenue equals marginal cost.

The production function has decreasing returns to scale.

The greater is the marginal productivity of labor relative to that of capital

The marginal rate of technical substitution falls as labor increases and capital decreases

Joey cuts lawns during the summer. Let q equal the number of acres mowed per day, and let L equal the number of hours worked per day. Joey never works more than eight hours per day, and during that time his short-run production function is q=0.2 * : Which of the following statements is false?

Consider Boeing (a producer of jet aircraft), General Mills (a producer of breakfast cereals), and Wacky Jack's (which claims to be the largest U.S. provider of singing telegrams). For which of these firms is the short run the longest period of time? For which is the long run the shortest? Explain.

You observe that MPL>APL and MPL is increasing as more labor input is used.Output must be _____________ at _____________ rate and average productivity 'APL' must _________________

Travel websites such as Travelocity tend to offer reservation services for multiple travel modes. This is because

A firm has to pay a tax equal to 1515% of its revenue. Give a condition that determines the output level at which it maximizes its after-tax profit.Part 2Let R be revenue, C be cost, MR be marginal revenue, and MC be marginal cost. The firm will set output where

The cost function has economies of scale if

Firms in a monopolistically competitive market face ________ demand curves and earn ________ economic profits in the long run.

If a firm offers a senior citizen discount,

What are the profit-maximizing prices in two markets with different demand elasticities?

In a Bertrand model with identical products

In the Cournot model, if the products are differentiated

A firm that has market power

The effect of a shift in demand on a monopoly's output depends on

has an elasticity of -1.2

When the marginal revenue curve intersects the horizontal axis

Mergers are closely scrutinized by the government because

Disneyland price discriminate because

When a monopoly lowers its price to increase quantity

Monopolistically competitive firms

Mergers often increase profit by

The industry would produce more output and charge a lower price after the change

A difference between a perfectly competitive market equilibrium and a perfect price discrimination equilibrium is that in a competitive market ________, whereas in perfect price discrimination ________.

If a market is controlled by a perfect - price - discriminating monopoly, then

Airlines offer lower prices to vacationers than to business travelers because

If AC< p where MR = MC

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