Part A: Multiple Choice Questions

1- Marginal Costs < Average Costs

A- Accounting Costs

B- Average Costs rise when

C- Accounting Costs fall when

D- Average Variable Costs

Answer:

2- The buyer's WTP which also increases Profit.

A- Perfect Price Discrimination Graph:

B- Profit Maximization - Monopoly:

C- Price Discrimination is defined by:

D- To sell at a Larger Q, Monopoly must:

Answer:

3- Solely makes Monopoly Profit, no DWL or CS

A- To sell at a Larger Q, Monopoly must:

B- Price Discrimination is defined by:

C- Perfect Price Discrimination Graph:

D- What is Price Discrimination?

Answer:

4- Some Firms exit, as demand and prices are Increased

A- Monopolistic Competition/Monopoly: LR - SR Profits

B- Monopolistic Competition/Monopoly: LR - SP Losses

C- Monopolistic Competition Profits: Short Run

D- Monopolistic Competition Losses: Short Run

Answer:

5- Monopolistic Competition: Yes

Monopoly: Yes

A- Number of Sellers (MC/M):

B- Free Entry/Exit (MC/M):

C- Market Power? (MC/PC):

D- Market Power? (MC/M):

Answer:

6- Incentive Quality, Resourceful

A- Brand Names - Defense:

B- Advertising - Critque:

C- Brand Names - Critique:

D- These 2 Externalities are:

Answer:

7- Monopolistic Competition: Many

Monopoly: One

A- Close Substitues (MC/M):

B- Number of Sellers (MC/PC):

C- Number of Sellers (MC/M):

D- Long Run Profits (MC/M):

Answer:

8- -group of firms acting like a monopoly

Ex: OPEC

A- Market Power

B- Cartel

C- Oligopoly

D- Monopoly profits

Answer:

9- Agreement among firms in a market to fix prices or total quantity produced

A- Non-Collusion

B- Monopoly profits

C- Collusion

D- Oligopoly

Answer:

10- -Measure of market concentration

A- Market Power

B- Cartel

C- Monopoly profits

D- 2 Class of Outcome

Answer:

11- the tendency for the mix of unobserved attributes to become undesirable from the standpoint of an uninformed party

A- Median voter theorem

B- Behavioral economics

C- Political economy

D- Adverse selection

Answer:

12- An action taken by an informed party to reveal private information to an uninformed party

A- Principal

B- Screening

C- Agent

D- Signaling

Answer:

13- A mathematical result showing that, under certain assumed conditions, there is no scheme for aggregating individuals preferences into a valid set of social preferences

A- Behavioral economics

B- Median voter theorem

C- Adverse selection

D- Arrow's impossibility theorem

Answer:

14- The change in total revenue from an additional unit sold

A- Total Revenue

B- Efficient scale

C- Marginal revenue

D- Average revenue

Answer:

15- Amount of output per unit of variable input.

A- Marginal Product =

B- Average Product =

C- Economic Profit =

D- Total Revenue

Answer: