Please provide the correct and confirmed answer to get the full score on this Quiz

ECON 101 QUIZ

Q: Tick the correct answer in following:

1. The practice of selling a good at different prices to different consumers is called:

	a.	Limit price
	b.	Price discrimination
	c.	Market price
	d.	Shut down price.

2. Which of the following represents 'shut down price' under perfect competition?

	a.	The price at which economic profit is zero.
	b.	The price at which economic profit is positive.
	c.	Price being equal to average total cost.
	d.	Price being equal to marginal cost.

3. Suppose buyers in the used car market are willing to pay $6,000 for a plum (high-quality) used car and $3000 for a lemon (low-quality) used car. If buyers believe that 50% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?

	a.	$3000
	b.	$3500
	c.	$4500
	d.	$6000

4. The change in cost from a one-unit increase in output is called:

	a.	Average variable cost.
	b.	Marginal cost.
	c.	Average total cost.
	d.	Opportunity cost.

5. A firm is producing a quantity of 100 units, the market price is $20 and the firm's average cost is $18. What is the firm's total profit?

	a.	$50
	b.	$100
	c.	$200
	d.	$300

6. An outcome of a game in which each player is doing the best he or she can, given the action of the other players is called:

	a.	Duopolists' dilemma.
	b.	Dominant strategy.
	c.	Nash equilibrium.
	d.	A tit-for-tat strategy.

7. You sell your good in a perfectly competitive market where the market price is $10.00. When you sell 70 units your total revenue is $700. When you sell 71 units,

	a.	total revenue increases by $10.
	b.	total revenue increases by less than $10.
	c.	total revenue increases by more than $10.
	d.	total revenue may increase or decrease.

8. Suppose a market consists of six firms. The largest firm have 30% of the market, the second have 25%, the third have 20%, the fourth with 15% and the next two firms each have 5% of the market, the four-firm concentration ratio is:

	a.	55%
	b.	60%
	c.	70%
	d.	90%

9. Private goods are:

	a.	Nonrival in consumption and nonexcludable.
	b.	Nonrival in consumption and excludable.
	c.	Rival in consumption and excludable.
	d.	Rival in consumption and nonexcludable.

10. The exclusive right to sell a new good for some period of time is called:

	a.	Natural monopoly.
	b.	Network externalities.
	c.	Licensing policies.
	d.	Patent