1、【单选题】economics is best defined as the study of: a、financial decision-making. b、how consumers make purchasing decisions. c、choices made by people faced with scarcity. d、inflation, unemployment, and economic growth.
2、【单选题】scarcity can best be defined as a situation in which: a、there are no buyers willing to purchase what sellers have produced. b、there are not enough goods to satisfy all of the buyers demands. c、resources are limited in quantity and can be used in different ways. d、there is more than enough money to satisfy consumers wants.
3、【单选题】because resources are limited: a、only the very wealthy can get everything they want. b、firms will be forced out of business. c、the availability of goods will be limited but the availability of services will not. d、people must make choices.
4、【单选题】which of the following is not a factor of production? a、money b、human capital c、physical capital d、labor
5、【单选题】to think at the margin means to consider: a、how nothing remains constant over time. b、how a small change in one variable affects another variable. c、how people behave in their own self-interest. d、how people will decide what to purchase.
6、【单选题】in a modern market economy, most of the answers to the questions of what to produce, how to produce it, and who should get the production are made by: a、governments. b、individuals. c、firms. d、both b and c.
7、【单选题】positive economics: a、is the focus of most modern economic reasoning. b、concerns the forces that affect economic activity. c、predicts the consequences of alternative actions. d、all of the above are correct.
8、【单选题】which of the following is an example of a normative question? a、how will an increase in the price of gasoline affect taxi drivers? b、what fraction of an income-tax cut will be spent on consumer goods? c、should the government provide free prescription drugs to senior citizens? d、how will an increase in the minimum wage affect teenaged workers?
9、【单选题】which of the following is a question answered with positive economic analysis? a、if we had more money, should the college offer free parking for students? b、if we can afford it, should the college provide more financial aid assistance? c、if the college increased tuition, by how much will class sizes decline? d、as a result of the recession, should the college cut tuition to stimulate enrollments?
10、【单选题】tradeoff is a、allowing the government and other organizations to choose for us b、sacrificing one thing for another. c、deciding who consumes the products produced in an economy. d、holding other variables fixed.
2.3课后作业及阅读材料
1、【单选题】suppose that your tuition to attend college is $10,000 per year and you spend $4,000 per year on room and board. if you were working full time instead of attending college, you could earn $20,000 per year. what is your opportunity cost of attending college for one year? a、$14,000 b、$24,000 c、$30,000 d、$34,000
2、【单选题】if an economy is fully utilizing its resources, it can produce more of one product only if it: a、doubles manufacturing of the product. b、produces less of another product. c、adds more people to the labor force. d、reduces the prices of the most expensive products.
3、【单选题】the marginal principle states that "we should increase the level of an activity as long as: a、its marginal benefit exceeds it marginal cost." b、its marginal cost exceeds its marginal benefit." c、its total benefit exceeds its total cost." d、its total cost exceeds its total benefit."
4、【单选题】if a consumer can buy four pizzas for $24 and five pizzas for $25, then the marginal cost of the fifth pizza is: a、$25. b、$5. c、$6. d、$1.
5、【单选题】the economic reason why you voluntarily pay tuition to get into the university/college that you are in right now is because: a、you believe the value of education is higher than the tuition costs. b、the marginal benefit of education is positive. c、the marginal benefit of money is zero. d、you believe the value of education is lower than the tuition costs.
6、【单选题】to make things simpler and focus attention on what really matters, economists would a、use assumptions. b、ignore all variables. c、think at the margin. d、respond to incentives.
7、【单选题】if an economy is represented by a point inside its production possibilities curve: a、it can produce more of one product even if it does not produce less of another product. b、it can produce more of one product only if it produces less of another product. c、it cannot produce more of one product unless it stops producing the other product entirely. d、it cannot possibly produce more of one product, even if it produces less of another product.
8、【单选题】if an economy is represented by a point along its production possibilities curve: a、it can produce more of one product even if it does not produce less of another product. b、it can produce more of one product only if it produces less of another product. c、it cannot produce more of one product unless it stops producing the other product entirely. d、it cannot possibly produce more of one product, even if it produces less of another product.
9、【单选题】suppose that you own a house. what is the opportunity cost of living in the house? a、there is no opportunity cost because you own the house. b、there is no opportunity cost unless you could set up a business in the house. c、the opportunity cost is the rent you could have received from a tenant if you didn't live there. d、the opportunity cost is the cost of your monthly mortgage payment plus bills.
10、【单选题】jacinda quit her job as a blackjack dealer where she made $42,000 per year to start her own florist business. her business expenses are $14,000 per year on rent, $21,000 per year on supplies, and $9,000 per year on part time help. as for her personal expenses, her apartment costs her $12,000 per year and her personal bills are an extra $6,000 per year. what is jacinda's opportunity cost of running the business？ a、$104,000 b、$86,000 c、$62,000 d、$44,000
3.4课后作业及阅读材料
1、【单选题】suppose bob can produce more jeans than joe in a day. bob has ________ advantage over joe in sewing jeans. a、an absolute b、an absolute and a comparative c、a comparative d、neither an absolute nor a comparative
2、【单选题】suppose that in the time it takes for him to bake a cake, bob can sew 5 pairs of jeans. in the time it takes for joe to bake a cake, he can sew 8 pairs of jeans day. in this example, bob has ________ advantage over joe in cake baking. a、an absolute b、an absolute and a comparative c、a comparative d、neither an absolute nor a comparative
3、【单选题】table 3.1 illustrates willy and blythe's hourly production for apples and carrots. based on the table, blythe's opportunity cost of 1 carrot is: a、3 apples. b、4 apples. c、6 apples. d、1.5 apples.
4、【单选题】table 3.1 illustrates willy and blythe's hourly production for apples and carrots. from the table, we can conclude that: a、willy should specialize in carrots and trade for apples. b、willy should specialize in apples and trade for carrots. c、blithe should specialize in both goods. d、willy should specialize in both goods.
5、【单选题】table 3.1 illustrates willy and blythe's hourly production for apples and carrots. from the table, we can conclude that: a、willy has an absolute advantage in producing apples but not carrots. b、willy has an absolute advantage in producing carrots but not apples. c、willy has an absolute advantage in producing both goods. d、willy does not have an absolute advantage in producing either good.
6、【单选题】a rich nation will trade with a poor nation because the: a、rich nation has the absolute advantage in all products. b、poor nation has the absolute advantage in all products. c、poor nation has the comparative advantage in a product. d、rich nation has the comparative advantage in all products.
7、【单选题】a product produced in a foreign country and purchased by residents of the home country is: a、an export. b、an import. c、savings. d、investment.
8、【单选题】which statement is true? a、two countries can achieve gains from trade even if one of the countries has an absolute advantange in the production of all goods b、certain very talented people have a comparative advantage in everything they do c、if a certain trade is good for one person, it can't be good for the other one d、if a certain trade is good for one person, it is always good for the other one
9、【单选题】in a market system, prices: a、signal the relative scarcity of a product. b、are unfair. c、are too high. d、all of the above.
1、【单选题】when a demand curve is drawn, which of the following is held constant? a、people's income b、people's preferences c、prices of related goods d、all of the above are held constant when constructing a demand curve
2、【单选题】the law of demand states that the quantity demanded of a product increases as: a、consumer income rises. b、the prices of other products fall. c、the price of the product rises. d、the price of the product falls.
3、【单选题】when there is a change in the quantity demanded it means that the: a、hours the customer can buy products each day have increased. b、number of products in inventory have increased. c、quantity a consumer is willing to buy changes when the price changes. d、selling price of the products has not changed.
4、【单选题】the market supply curve is: a、downward sloping and is flatter than an individual's supply curve. b、upward sloping and is flatter than an individual's supply curve. c、downward sloping and is steeper than an individual's supply curve. d、upward sloping and is steeper than an individual's supply curve.
5、【单选题】suppose that the quantity supplied of pizza exceeds the quantity demanded for pizza. we would expect that: a、the price of pizza will increase. b、the price of pizza will decrease. c、the supply will decrease to meet the demand. d、the demand will increase to meet the supply.
6、【单选题】suppose that the current price in a market for pizza is $9. at that price, the quantity demanded is 519 and the quantity supplied is 400. in this market, we would expect that: a、the price of pizzas would increase. b、the price of pizzas would decrease. c、buyers would want to buy more pizza in the future. d、sellers would want to sell fewer pizzas in the future.
7、【单选题】suppose that the quantity demanded for cars exceeds the quantity supplied of cars. we would expect that: a、the price of cars will increase. b、the price of cars will decrease. c、the supply will increase to meet the demand. d、the demand will decrease to meet the supply.
8、【单选题】if the equilibrium price of a good decreases and the equilibrium quantity of the good decreases, we can conclude that a、demand increased. b、demand decreased. c、supply increased. d、supply decreased.
9、【单选题】suppose that a product benefits from a successful advertising campaign. the result is that: a、the demand for the product increases. b、the demand for the product decreases. c、the supply of the product increases. d、the supply of the product decreases.
10、【单选题】bananas and apples are substitutes. when the price of bananas falls and a technological advancement in apple production occurs at the same time: a、the equilibrium price of apples rises and the equilibrium quantity of apples falls. b、the equilibrium price of apples rises and the equilibrium quantity of apples rises. c、the equilibrium price of apples rises and the equilibrium quantity of apples might rise or fall. d、the equilibrium price of apples falls and the equilibrium quantity of apples might rise or fall.
5.6课后作业及阅读材料
1、【单选题】first choice cracker company needs to increase the price of crackers by 5%, based on a substantial increase in input costs such as flour. the price elasticity of demand for crackers is 0.4. the company can expect the consumption of cereal to: a、decrease by 1.5%. b、increase by 1.5%. c、decrease by 2.0%. d、increase by 2.0%.
2、【单选题】at a price of $25, a store can sell 28 picture frames a day. if the price falls to $20, the store can sell 35 picture frames a day. using the initial-value method, the price elasticity of demand is: a、1.9. b、2.5. c、0.8. d、1.25.
3、【单选题】if the demand for orange juice is elastic, then as the price falls, quantity demanded for orange juice will ________ and total revenue for orange suppliers will ________. a、increase; increase b、decrease; increase c、decrease; decrease d、increase; decrease
4、【单选题】maria raised the price of her burritos from $2.00 to $2.40 due to an increase on the price of cheese, one of the main ingredients. her total revenue increased from $300 to $338. we can conclude that the demand for burritos is: a、unit elastic. b、inelastic. c、elastic. d、horizontal.
5、【单选题】price and total revenue are inversely related when demand is: a、elastic. b、inelastic. c、unitary elastic. d、perfectly inelastic.
6、【单选题】when measured along a linear downward-sloping demand curve, the price elasticity: a、remains constant and is greater than one. b、remains constant and is less than one. c、increases in absolute value from left to right. d、decreases in absolute value from left to right.
7、【单选题】chris buys more new jewelry when her income rises. this means that, for chris: a、new jewelry is an inferior good. b、the income elasticity of demand for new jewelry is positive. c、the income elasticity of demand for new jewelry is negative. d、none of the above
8、【单选题】two goods are complements if the: a、price elasticity of each is greater than one. b、income elasticity of each is negative. c、cross-price elasticity is negative. d、cross-price elasticity is positive.
9、【单选题】suppose that david buys the same number of energy drinks every weekend no matter what happens to the price of the energy drinks. what does this suggest about david's demand for energy drinks? a、it is elastic. b、it is perfectly inelastic. c、it is unitary elastic. d、it is not something that can be characterized without knowing the prices of the energy drinks.
10、【单选题】if consumers have a long time to respond to an increase in electricity prices their demand is likely to be ________ than if they are only given a short time. a、no different b、higher c、more elastic d、less elastic
6.7课后作业及阅读材料
1、【单选题】if the government imposes a maximum price for milk that is above the equilibrium price: a、this maximum price for milk will have no economic impact. b、quantity demanded of milk will be less than quantity supplied. c、demand for milk will be greater than supply. d、the available milk supply will have to be rationed.
2、【单选题】if the market price of salmon is $8.99 per pound but the government will not allow salmon farmers to charge more than $4.99 per pound of salmon, which of the following will happen? a、the supply curve for salmon will shift to the left. b、there will be an excess demand for salmon. c、there will be an excess supply of salmon. d、the market will be in equilibrium at a price of $4.99.
3、【单选题】if the government sets a minimum price above the equilibrium price for soybeans. which of the following statements will be correct？ a、quantity demanded will be equal to quantity supplied. b、there will be excess supply. c、there will be excess demand. d、all of the above
4、【单选题】if the government sets a minimum price for gasoline below the equilibrium price: a、quantity demanded of gasoline will be equal to quantity supplied of gasoline. b、there will be excess demand for gasoline. c、there will be excess supply for gasoline. d、demand for gasoline will be less than supply for gasoline.
5、【单选题】 figure 6.7 shows the supply and demand curves for human kidneys. because the government does not allow a person to sell a kidney: a、50 kidneys are donated. b、30 kidneys are donated c、20 kidneys are donated. d、0 kidneys are donated.
6、【单选题】figure 6.7 shows the supply and demand curves for human kidneys. if the government allowed the market to seek equilibrium, then: a、50 kidneys are donated b、30 kidneys are donated c、20 kidneys are donated. d、0 kidneys are donated.
7、【单选题】figure 6.7 shows the supply and demand curves for human kidneys. if the government set the price of a kidney at $5,000, then: a、50 kidneys would be purchased b、300 kidneys would be purchased. c、5000 kidneys would be purchased d、0 kidneys would be purchased.
8、【单选题】when a tax is levied on a good or service: a、buyers and sellers generally share the burden of the tax. b、buyers always bear the burden of the tax. c、sellers always bear the burden of the tax. d、sellers bear some of the burden of the tax only if supply is perfectly elastic.
9、【单选题】if the supply of land were perfectly inelastic, a tax on land would be paid: a、partly by sellers and partly by buyers. b、entirely by sellers. c、entirely by buyers. d、it is impossible to determine given this information.
10、【单选题】consider a market with a downward sloping demand curve and an upward sloping supply curve. a $50 tax levied on the producer of the good will cause the market price to: a、increase by $50 b、decrease by $50. c、increase by less than $50. d、increase by more than $50.
11、【单选题】suppose you receive a consumer surplus of $50. the $50 represents: a、a monetary payment from the store. b、a monetary payment from the government. c、a reduction in the original price of the good. d、the fact that you paid $50 less than you were willing to pay for the good.
12、【单选题】assume that linen pants are a normal good and consumer income rises. if the supply of linen pants remains constant, producer surplus: a、will decrease. b、will increase. c、will remain constant. d、may increase or decrease depending on the amount of the price increase.
13、【单选题】suppose that the government sets a maximum price for insulin below the equilibrium price: a、there will be an efficient level of insulin produced. b、there will be excess supply of insulin. c、total surplus will be lower than it would be at the market equilibrium price. d、total surplus will be greater than it would be at the market equilibrium price.
14、【单选题】at the market equilibrium, resources are allocated efficiently because: a、the marginal cost of producing another unit is equal to zero. b、the price buyers pay accurately reflects the marginal cost of the resources used to produce the good c、the price buyers pay is greater than sellers' willingness to sell. d、all of the above.
15、【单选题】in the figure below, the decline in consumer surplus resulting from an increase in price from $5 to $10 is given by the area: a、fgh b、ceh c、fgdc d、cegf
16、【单选题】the consumer surplus of electric toothbrushes can be decreased by: a、a shift in the supply curve for electric toothbrushes due to a cheaper production process. b、a fall in the price of electric toothbrushes. c、government imposed price ceilings on electric toothbrushes d、a rise in the price of electric toothbrushes.
7.3课后作业及阅读材料
1、【单选题】average variable cost and average total costs get closer together as output increases because: a、diminishing returns set in. b、average fixed costs decrease as output increases. c、marginal costs decrease as output increases. d、economies of scale become apparent.
2、【单选题】you are the owner and only employee of a company that repairs computers. last year, you earned total revenues of $75,000. your costs for equipment, rent, and supplies were $10,000. to start this business you quit a job at another computer software firm that paid $40,000 a year. during the year, your economic costs were: a、$10,000. b、$40,000. c、$50,000. d、$75,000.
3、【单选题】the short run can be defined as any period of time: a、less than one year. b、in which some inputs are fixed. c、in which all inputs are variable. d、in which price is fixed.
4、【单选题】refer to figure 8.1. the marginal product of the second worker is ________ lawns moved. a、4 b、5 c、5.5 d、11
5、【单选题】refer to figure 8.1. the lawn mower company's total-product curve shows the following: a、the effects of labor specialization. b、the effects of diminishing returns. c、the effects of labor specialization and diminishing marginal product d、none of the above.
6、【单选题】if average variable cost decreases as output increases, then: a、marginal cost is negative. b、marginal cost is decreasing. c、marginal cost is less than average variable cost. d、marginal cost is greater than average variable cost.
7、【单选题】which type of cost always increases immediately when output increases? a、fixed costs b、overhead costs c、total variable costs d、sunk costs
8、【单选题】for small quantities of output, average variable cost decreases as output increases due to: a、a reduction in the number of workers. b、diminishing return. c、labor specialization increases worker productivity. d、more information is needed to determine.
9、【单选题】a firm will begin to experience diminishing returns at the point where: a、marginal cost increases. b、marginal cost decreases. c、marginal product increases. d、both b and c
10、【单选题】as output increases, total cost also increases. therefore: a、marginal cost is increasing. b、marginal cost is positive. c、average fixed costs are increasing. d、all of the above
8.7课后作业及阅读材料
1、【单选题】the best example of a perfectly competitive industry is: a、music stores. b、beer. c、cigarettes. d、corn.
2、【单选题】the perfectly competitive firm faces a demand curve that is ________ and ________: a、perfectly inelastic; vertical b、perfectly elastic; horizontal c、unitary elastic; slopping downward d、the same as the market demand for the product; vertical
3、【单选题】if a firm in a perfectly competitive market tries to raise its price above the going market price, then: a、it will sell more output. b、it will sell the same amount of output as before. c、it will not be able to sell any output. d、it will sell some output, but not as much as before.
4、【单选题】in perfect competition, the marginal revenue curve: a、and the demand curve facing the firm are identical. b、is always above the demand curve facing the firm. c、is always below the demand curve facing the firm. d、intersects the demand curve when marginal revenue is minimized.
5、【单选题】assume that a smartphone maker operates in a perfectly competitive market producing 25,000 smartphones per day. at this output level, price is less than this firm's marginal cost. it follows that producing one more smartphone will cause this firm's: a、total cost to decrease. b、profits to increase. c、profits to decrease. d、profits to remain unchanged.
6、【单选题】a milk company in a perfectly competitive industry is producing 10000 gallons of milk, its profit-maximizing quantity. industry price for a gallon of milk is $3.50, total fixed costs are $5,000, and total variable costs are $10,000. the firm's economic profit is: a、$35,000. b、$30,000. c、$20,000. d、$15,000.
7、【单选题】a perfectly competitive firm is producing 75 units of output. the market price is $7 and the firm's marginal cost is $8. the firm should: a、lower its price. b、raise its price. c、increase production. d、decrease production.
8、【单选题】refer to figure 9.5. this farmer would earn zero economic profit if price was: a、$7. b、$9. c、$10. d、$11.
9、【单选题】refer to figure 9.6. at a market price of $20, this perfectly competitive profit maximizing firm should produce approximately ________ units. a、30 b、35 c、40 d、45
10、【单选题】refer to figure 9.6. at a market price of $15, this perfectly competitive profit maximizing firm should: a、operate in the short run. b、shut down in the short run. c、realize a normal profit in the short run. d、operate in the long run.
9.5课后作业及阅读材料
1、【单选题】which type of barrier to entry allows the electric company to maintain a monopoly over the production of electricity? a、a patent b、economies of scale c、diseconomies of scale d、ownership of a scarce factor of production
2、【单选题】in a monopoly, the market demand curve is: a、the same as the demand curve facing the firm. b、the summation of all the individual firm's demand curves. c、nonexistent. d、the marginal cost curve above minimum average variable cost.
3、【单选题】assume a non-price discriminating monopolist can sell 20 units of a good for 4.00 each and can sell 21 units of that good for $ 3.85 each. the marginal revenue of the 21st unit is: a、$85. b、$ -85. c、$ .85. d、$ -.85.
4、【单选题】a monopolist can: a、sell as much as he wants at the chosen price since he is the only seller. b、increase price only if he is willing to reduce output sold. c、increase the price of his output and still sell the same quantity. d、increase the price of his output and the quantity sold at the same time.
5、【单选题】to maximize profit, the monopolist produces on the ________ portion of the demand curve where ________. a、elastic; price equals marginal cost b、elastic; marginal revenue equals marginal cost c、inelastic; price equals marginal revenue d、inelastic; marginal revenue equals marginal cost
6、【单选题】for a profit maximizing monopolist, price: a、equals marginal revenue. b、is less than marginal revenue. c、is greater than marginal revenue. d、can be greater than or less than marginal revenue.
7、【单选题】suppose we know that a monopolist is maximizing its profits. which of the following must be true? the monopolist has: a、maximized its total revenue. b、set price equal to its average cost. c、maximized the difference between marginal revenue and marginal cost. d、equated marginal revenue and marginal cost.
8、【单选题】refer to figure 10.3. the profit-maximizing level of output for this monopolist is ________ units of output. a、20 b、22 c、24 d、26
9、【单选题】refer to figure 10.3. the profit-maximizing price for this firm is: a、$5. b、$7. c、$9. d、$11.
10、【单选题】refer to figure 10.3. in the long run this monopoly firm's profit will: a、fall. b、rise. c、remain unchanged. d、become normal.
10.5课后作业及阅读材料
1、【单选题】what encourages firms to enter markets? a、the diversity of products offered must be small. b、firms believe they can violate patent protection with impunity. c、no firms in the industry can experience losses. d、some existing firms in the market must be earning economic profits.
2、【单选题】assume that there is a single firm producing toilet paper and the firm specific demand curve is the same as the market demand curve. if a second firm that also produces toilet paper enters the market what will happen to the firm-specific demand curve of the original firm? a、there is a movement up along the demand curve. b、there is a movement down along the demand curve. c、shifts to the right d、shifts to the left
3、【单选题】which of the following characteristics is shared by both monopolistically competitive markets and perfectly competitive markets? a、no barriers to entry b、identical products across sellers c、small number of interdependent sellers d、firms face downward sloping demand curves
4、【单选题】which of the following characteristics is shared by both monopolistically competitive markets and monopoly markets? a、free entry b、identical products across sellers c、firms face downward sloping demand curves. d、firms are price takers.
5、【单选题】as a result of product differentiation, a firm in a monopolistically competitive market: a、always has some market power. b、is very similar to a firm in a perfectly competitive market. c、faces a perfectly elastic demand curve. d、is very similar to a monopolist.
6、【单选题】in a monopolistically competitive market, product differentiation ensures that in the long run: a、price will equal marginal cost. b、marginal revenue will exceed marginal cost. c、marginal revenue will equal average total cost. d、price will exceed marginal revenue.
7、【单选题】in monopolistic competition, the firm can increase price and still sell some output because: a、there is no free entry. b、they are producing a product for which there is no close substitute. c、they are colluding with other firms to set price. d、they are producing a product that has some degree of differentiation.
8、【单选题】the demand for a product of a monopolistically competitive firm is: a、price inelastic. b、price elastic. c、unit elastic. d、undefined.
9、【单选题】which type of profit maximizing firm will choose to produce where marginal revenue equals marginal cost? a、perfect competition b、perfect competition and monopolistic competition c、monopolistic competition d、all types of firms
10、【单选题】for monopolistically competitive firms in long-run equilibrium: a、the demand curve must intersect average total cost at its minimum. b、the demand curve must be tangent to the average total cost curve at its minimum. c、at the profit-maximizing quantity, the demand curve must intersect the average total cost curve quan d、at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve.
11.4课后作业及阅读材料
1、【单选题】which of the following is the best example of an oligopolistic industry? a、cleaning services b、airline services c、local water utility d、designer shoes
2、【单选题】the market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is: a、perfect competition. b、monopoly. c、monopolistic competition. d、oligopoly.
3、【单选题】a cartel is: a、a group of firms that coordinate their pricing and quantity decisions. b、a type of oligopoly in which the demand curve is "kinked." c、a duopoly market where firms have the exact product. d、a group of firms that all produce the same level of output.
4、【单选题】an arrangement in which firms conspire to fix prices is called: a、a cartel. b、price-ceiling. c、price-fixing. d、a duopoly.
5、【单选题】 refer to figure 12.1. six firms that produce chewing gum have formed a cartel. the cartel faces the market demand curve given by d. to maximize profits, the cartel should produce ________ packs of chewing gum and the price should be ________. a、12,000; $.25 b、12,000; $.40 c、14,000; $.30 d、$16,000; $.35
6、【单选题】refer to figure 12.1. assume the firms have formed a cartel. if the cartel is maximizing profits, the cartel's profits are: a、$0. b、$1,080. c、$1,800. d、indeterminate from this information.
7、【单选题】assume that firms in an oligopoly are currently colluding to set price and output to maximize total industry profit. if the oligopolies are forced to stop colluding, the price charged by the oligopolies would ________ and the total output produced will ________. a、increase; increase b、increase; decrease c、decrease; increase d、decrease; decrease
8、【单选题】the nash equilibrium is an outcome of a game: a、when each player is doing the best he or she can, given the actions of the other players. b、each player has a competitive advantage over the other players. c、in which there are no winners only losers. d、when all the possibilities are revealed to the players.
9、【单选题】 refer to figure 12.7. the numerical data show daily profits for each of the two firms when they choose a specific pricing strategy. if both firms follow their individual dominant strategy: a、omega will earn $300 daily profit and zeta will earn $100 daily profit. b、omega will earn $100 daily profit and zeta will earn $300 daily profit. c、both will earn $200 daily profit. d、both will earn $150 daily profit.
10、【单选题】refer to figure 12.7 the numerical data show daily profits for each of the two firms when they choose a specific pricing strategy.in the nash equilibrium: a、both firms would a high price. b、both firms would charge a low price. c、only zeta would charge a low price. d、only omega would charge a low price.