Microeconomics

Front 1

If an oligopolist is producing a level of output where MR exceeds MC, then it should:

Back 1

Increase its output.

Front 2

Which market structure is characterized by a few interdependent firms?

Back 2

Oligopoly

Front 3

It is most difficult for new firms to enter into:

Back 3

An oligopolistic market.

Front 4

If an oligopolist is going to change its price or output, its initial concern is:

Back 4

The response of itscompetitors.

Front 5

Game theory is:

Back 5

The study of how decisions are made when interdependence exists between firms.

Front 6

Which of thefollowing characterizes monopolistic competition?

Back 6

Many firms produce aparticular type of product, but each maintains some independent control overits own price.

Front 7

Monopolisticallycompetitive industries are characterized by all of the following except:

Back 7

Homogenous products.

Front 8

If there are many firms inan industry producing goods that are similar but slightly different, this is anexample of:

Back 8

Monopolistic competition.

Front 9

The combined market shareof the top four firms in a monopolistically competitive industry will typicallybe in the range of:

Back 9

20 to 40 percent.

Front 10

A monopolisticallycompetitive industry is characterized by ________ concentration ratios and________ entry barriers.

Back 10

Low; low

Front 11

When firms have the abilityto restrict output, raise prices, stifle competition, and inhibit innovationthe market failure involved is: When firms have the abilityto restrict output, raise prices, stifle competition, and inhibit innovationthe market failure involved is:

Back 11

Market power.

Front 12

Market failure can resultfrom all of the following except:

Back 12

Regulation.

Front 13

Market failure:

Back 13

Occurs whenever animperfection in the market mechanism prevents optimal outcomes.

Front 14

Which of the following is aform of government intervention?

Back 14

Regulation

Front 15

Which of the following is aform of government intervention that is designed to correct marketfailures?

Back 15

Antitrust laws

Front 16

The opportunity cost ofworking is the:

Back 16

Value of leisure time thatmust be given up.

Front 17

The wage rate is:

Back 17

The payment for labor.

Front 18

If wages are relativelyhigh, the individual labor supply curve may:

Back 18

Bend backwards.

Front 19

Kip will work less hours ifhis salary increases. For Kip, the ___________ effect must outweigh the__________ effect.

Back 19

Income; substitution

Front 20

An individual's laborsupply curve:

Back 20

Slopes upward initially, andthen may bend backward.

Front 21

A major difference between oligopoly andmonopolistic competition is that monopolistically competitive firms _______,and oligopolies do not.

Back 21

Have many competitors

Front 22

Firms in a monopolisticallycompetitive market will:

Back 22

Use the profit-maximizingrule MC = MR.

Front 23

For anupward-sloping labor supply curve, the quantity of labor supplied variesdirectly, ceteris paribus, with:

Back 23

The wage rate.

Front 24

When the minimum wage israised in a competitive market, ceteris paribus:

Back 24

Some workers are better offand some are worse off.

Front 25

How many strategies doeseach player have?

Back 25

4

Front 26

What strategies does Ronhave?

Back 26

Confess and Don’t confess.

Front 27

What are Ron and David’spayoff respectively if Ron plays confess and David plays don’t confess?

Back 27

0 and -10

Front 28

What is the Nashequilibrium of the game?

Back 28

Ron Plays confess and Davidplays confess.

Front 29

Oligopolists will maximizetotal profits for all of the firms in the market at the rate of outputwhere:

Back 29

MR = MC for the market.

Front 30

Each producer inmonopolistic competition has:

Back 30

Some market power.

Front 31

The demand curve faced by amonopolistically competitive firm is:

Back 31

Downward sloping.

Front 32

Firms in a monopolisticallycompetitive market will:

Back 32

Use the profit-maximizingrule MC = MR.

Front 33

The substitution effect of wagesstates that a decreased wage rate:

Back 33

Encourages people to workless hours.

Front 34

The labor supply curve willbe positively sloped if the substitution effect of wages is:

Back 34

Stronger than the incomeeffect of wages.

Front 35

Profit:

Back 35

Is the difference betweentotal revenue and total cost.

Front 36

The number of firms in anoligopoly must be:

Back 36

Small enough so that onefirm's decisions have a significant impact on the decisions of the other firmsin the industry.

Front 37

Which of the following characterizesmonopolistic competition?

Back 37

Many firms produce a particular type of product,but each maintains some independent control over its own price.

Front 38

Monopolistically competitive industries arecharacterized by all of the following except:

Back 38

Homogenousproducts.

Front 39

If there are many firms in an industry producinggoods that are similar but slightly different, this is an example of:

Back 39

Monopolisticcompetition.

Front 40

A monopolistically competitive industry ischaracterized by ________ concentration ratios and ________ entrybarriers.

Back 40

Low; low

Front 41

Each producer in monopolistic competitionhas:

Back 41

Somemarket power.

Front 42

Which of the following may notcharacterize an oligopoly?

Back 42

Nomarket power

Front 43

ch of the following may not characterizean oligopoly?

Back 43

Manyfirms

Front 44

The study of how decisions are made whenstrategic interaction between firms exists is known as:

Back 44

Gametheory.

Front 45

The willingness to work a certain amount of timeat a given wage rate is known as:

Back 45

Labor supply.

Front 46

The opportunity cost of working is the:

Back 46

Valueof leisure time that must be given up.

Front 47

For an upward-sloping labor supply curve, thequantity of labor supplied varies directly, ceteris paribus, with:

Back 47

Thewage rate.

Front 48

If wages are relatively high, the individuallabor supply curve may:

Back 48

Bendbackwards.

Front 49

The labor supply curve starts to bend backwardonce the:

Back 49

Incomeeffect exceeds the substitution effect.

Front 50

A firm should hire an additional worker as longas the wage rate is

Back 50

Lessthan the MRP.

Front 51

A competitive firm should continue to hireworkers until the MRP is equal to:

Back 51

The market wage rate.

Front 52

In Table 15.1, the marginal physical product ofthe third worker hired is:

Back 52

5units per hour.

Front 53

In Table 15.1, the marginal revenue product ofthe second worker hired is:

Back 53

$24per hour.

Front 54

In Table 15.1, how many workers should be hired

Back 54

5.

Front 55

If the interest rate is 5%,then the present value of $200 to be received one year from now is:

Back 55

$190.47