Introduction to Microeconomics

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Table 7.10

Consider Table 7.10. Market quantity demanded at a price of $7 is

When the price of good X (placed on the horizontal axis) increases, holding the household's income and the price of good Y (placed on the vertical axis) fixed,

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Figure 8.2

Shelly's budget line is depicted in Figure 8.2. Which point(s) shows unattainable consumption choices given her income and current prices?

Which one of the following statements is true about the indifference curves for two goods that are close but not perfect substitutes?

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Figure 8.7

Consider the budget line and indifference curve in Figure 8.7. If the price of good X is $1, then the price of good Y is

A consumer says that she prefers a combination of F units of food and C units of clothing to a combination of f units of food and c units of clothing if (-- and only if) FC is bigger than fc. (So she likes the combination of 7 units of food and 8 units of clothing better than the combination of 10 units of food and 5 units of clothing, because (8)(7)=56>(10)(5)=50.) Which one of the combinations of food and clothing below would be on the same indifference curve for her as the combination of 6 units of food and 8 units of clothing?

Which one of the following is true at the best affordable choice of a consumer?

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Figure 10.1

Refer to Figure 10.1 which illustrates a firm's short-run total product curve. Which one of the following statements is true?

The average product of labour is

A firm's fixed costs are $100. If total costs are $200 for one unit of output and $310 for two units, what is the marginal cost of the second unit?

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Table 10.1

Refer to Table 10.1 which represents a firm's total product curve. The average product that would be produced if the firm employed the second worker is

If ATC is rising then MC must be

Suppose a candy manufacturer could triple its production of fudge by doubling its production facility for making fudge. This indicates the presence of

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Figure 10.7

Refer to Figure 10.7, which illustrates the short-run average total cost curves for four different plant sizes. Which plant has the lowest average total cost for an output rate of 5 sweaters a day?

A perfectly competitive firm is maximizing profit if

A firm that temporarily shuts down and produces no output incurs a loss equal to its

In a perfectly competitive industry, the market price is $20. An individual firm is producing the output at which MC = ATC = $15. AVC at that output is $10. What should the firm do to maximize its short-run profits?

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Table 11.3

Refer to Table 11.3, which shows the hourly costs for Chip's Pizza Palace, a perfectly competitive firm. If pizzas sell for $5, what is Chip's profit-maximizing output per hour?

In an industry with long-run external diseconomies, a permanent increase in demand in a perfectly competitive market results in the price

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Figure 11.8

Refer to Figure 11.8. The current market price is $11 and the firm has the plant size shown by SRAC₁. In the long run, the firm will

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Figure 11.4

Refer to Figure 11.4, which represents the curves necessary for a perfectly competitive firm to make its production decision. In the short run, if the market price of the product is $8, the firm will produce ________ units of output and make an economic ________.

For a natural monopoly, the average total cost curve

The table below shows price and quantity demanded for a good for which the demand curve has the equation Q=100/P². In this market, the marginal revenue

quantity	1	2	3	4	5	6
price	10.00	7.07	5.77	5.00	4.47	4.08

If the demand curve for a good had the equation Q=8-P [where Q is the total quantity demanded, and P the price], as shown in the table below, and if the total cost of producing Q units of the good was 2Q, then the quantity of output which maximizes a single-price monopoly's profits is

quantity	0	1	2	3	4	5	6	7	8
price	8	7	6	5	4	3	2	1	0

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Figure 12.5

Refer to Figure 12.5. If its fixed costs were $200, then the total profit for this single-price monopolist is

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Figure 12.6

Consider Figure 12.6. Suppose we have a market with a single-price monopolist. If the slanted-barred area shows the consumer surplus, and the vertical-barred area shows the producer surplus, which graph(s) correctly represents this market?

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Figure 12.8

Refer to Figure 12.8. Assume this monopolist can practise perfect price discrimination, and that total fixed costs are $20. How much is profit increased by the ability to practise perfect price discrimination?

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Figure 12.7

Consider Figure 12.7. What is the redistribution of surplus from consumers to the producer under perfect price-discriminating monopoly, as compared to perfect competition?

A price markup above marginal cost

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Figure 13.4

Figure 13.4 represents a monopolistically competitive firm in short-run equilibrium. What is the firm's level of output?

Which of the following are true? The similarities between perfect competition and monopolistic competition include:
(1) free entry and exit
(2) profit-maximizing output where MC = MR
(3) long-run economic profits equal zero.

The table below shows the profits (in millions of dollars) to two firms, a television broadcaster (firm "B") and a television manufacturer (firm "M"), which depend on the firms' strategies whether or not to broadcast in high definition, and whether or not to manufacture high-definition television receivers. Which statement describes correctly the non-cooperative game shown in the table? [Note : the first number in each cell is the profit to the broadcaster, and the second number in each cell is the profit to the manufacturer.]

In a cartel, the incentive to cheat is significant because

Consider a duopoly with collusion. If the duopoly maximizes profit,

Suppose that all the coffee--producing nations decide on quotas for each country, as part of a collusive arrangement to keep the price of coffee at the monopoly level. The nations also realize that the actual world price of coffee will depend on how much coffee they each produce, because the world demand curve for coffee slopes down. If the organization of coffee exporting countries does not have the legal power to enforce its voluntary quotas, which of the following statements is true?

In the absence of government intervention, a profit-maximizing competitive firm producing a good with an external cost will produce where

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Figure 15.2

Figure 15.2 shows the demand for good A as well as the marginal private cost (MC) and marginal social cost (MSC) associated with the production of good A. What is the efficient quantity of good A?

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Figure 15.4

Refer to Figure 15.4. Given in this figure are the marginal private benefit and marginal social benefit functions and the market supply function. If the market is unregulated, then at the equilibrium output level the marginal social benefit from consumption is

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Figure 15.3

Refer to Figure 15.3. A tax of ________ per tonne is necessary to achieve the efficient output of ________ tonnes of paper.

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Table 15.4

Refer to Table 15.4. Given in the table are the marginal private and social benefits for the consumption of chemical fertilizer and the marginal social cost of the production of fertilizer. Under these circumstances,