A. Heterogeneous product

B. Identical technology

C. Perfect information

D. No barriers to entry

E. Many firms and buyers

28. An individual competitive firm's short-run supply function is (over the relevant range of prices):

A. Its AVC schedule

B. Its ATC schedule

C. Its AFC schedule

D. Its MC schedule

E. Its MR schedule

29. Which of the following best describes a technology with increasing returns to scale?

A. Q(L, K) = 2L + 2K

B. Q(2L, K) = Q(L, 2K)

C. Q(2L, 2K) = Q(L, K)

D. 2Q(2L, 2K) = 4Q(L, K)

E. Q(2L, 2K) = 4Q(L, K)

30. Which of the following is true for a long-run equilibrium in a competitive industry?

A. min(AVC) = P

B. min(ATC) = P

C. min(MC) = P

D. At least one firm makes positive economic profit

E. More than one of the above

31. For a demand curve to slope upward,

A. Consumers are irrational

B. The good must be a normal good with a substitution effect that dominates the income effect

C. The good must be an inferior good with a substitution effect that dominates the income effect

D. The good must be a normal good with an income effect that dominates the substitution effect

E. The good must be an inferior good with an income effect that dominates the substitution effect

32. The market demand curve for a luxury good:

A. Is downward sloping

B. Is upward sloping

C. Has price elasticity greater than unity

D. Has price elasticity less than unity

E. Is absolutely elastic

33. Which of the following combinations is more likely to have straight-line indifference curve?

B. Left shoes and right shoes

C. Gasoline and automobiles

D. Lukoil gasoline and Rosneft gasoline

E. Pizza and beer

F. Samsung CD player and Samsung vacuum cleaner

34. The market demand curve is

A. Derived by vertically summing the individual demand curves at each quantity.

B. Derived by horizontally summing the individual demand curves at each price.

C. Derived by vertically summing the individual demand curves at each price.

D. Derived by horizontally summing the individual demand curves at each quantity.

E. Independent of individual demand curves.

35. Which of the following is a necessary condition for a monopoly to arise?

A. Production-specific patents

B. Superior technology or scale economies

C. Potential ability of a single firm to satisfy the whole industry demand at any price

D. More than one of the above

E. None of the above

36. A monopolist's marginal revenue curve lies below average revenue, because:

A. A monopolist typically has to pay high taxes

B. A monopolist has to decrease price of all goods sold if it wants to expand output

C. Marginal magnitudes consider smaller increments than average ones

D. Price elasticity of demand decreases as quantity rises

E. A monopolist tends to overprice its product

37. In which of the following circumstances a natural monopoly would likely arise?

A. Very high start-up costs and low unit production costs

B. Unit production costs are very high at relatively low output levels

C. Entrance of a second firm to the industry would result in losses for the entrant

D. All of the above

E. None of the above

38. A profit-maximizing monopolist practicing price discrimination will charge the lowest price in the market where demand

Дата добавления: 2015-10-30