An Online Test Assignment Micro Economics Econ201 - 825 Words

An Online Test Assignment: Micro Economics Econ201 (Coursework Sample) Content: Micro economics Econ201Name:Instructor:University of affiliation:Micro economics Econ201One defining characteristic of pure monopoly is that:C. The monopolist produces a product with no close substitutesWhich is a barrier to entry?C. Government licensing Other things equal, which reduces competition in an industry?D. An increase in the number of buyersThe representative firm in a purely competitive industry:D. Will earn an economic profit of zero in the long runAn example of a monopolistically competitive industry would be:D .Retail clothing Firms in an industry will not earn long-run economic profits if:C. There is free entry and exit of firms in the industryMarginal product is:A .the increase in total output attributable to the employment of one more workerThe law of diminishing returns indicates that:Beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.Which of the following is most likely to be a variable cost?A. fuel and power paymentsA.marginal cost must be greater than average total cost. The selling of stock is debt financing for a corporation.B. FalseAverage fixed costs diminish continuously as output increases. * TruePatents and copyrights were established by the government to reduce oligopoly and monopoly power. * FalsePrices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures. * FalseThe positive view of advertising suggests that it contributes to economic efficiency in the economy.B. FalsePrice fixing is illegal under Section 1 of the Sherman Act. * True * Rent-seeking behavior refers to activities designed to transfer income or wealth to a particular firm or resource supplier at someone else's or society's expense. * A. True A purely competitive firm is a price maker, but a monopolist is a price taker.B. FalsePart 2 of 4 - Short-Run Costs ÂQuestion 19 of 295.0 Point s(Exhibit: Short-Run Costs) At the given price, the most profitable level of output occurs at quantityC.S (Exhibit: Short-Run Costs) If the price declines, the minimum quantity of output supplied in the short run is quantity:B.Q(Exhibit: Short-Run Costs) If the price declines, production will continue in the short run, even though the firm incurs a loss, between quantities: A.O and Q. (Exhibit: Short-Run Costs) This firm's supply curve begins at quantity: A.Q. (Exhibit: Profit Maximization in Monopolistic Competition) A firm in monopolistic competition will maximize profits by producing the level of output where:B.MR = MC(Exhibit: Profit Maximization in Monopolistic Competition) In th...