Microeconomics questions and answers in June 2021

Besides airline pricing and movie tickets, give an example of the practical use of third-degree price discrimination. Be sure to explain the consumer types that are being identified, which receive the...
Imagine owning a business business. How would price elasticity of demand impact the  pricing decisions  of business? What are the  determinants of price elasticity  of demand? Identify at least th...
Answer the question based on the following information: Suppose 30 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and c...
Answer the question based on the following information: Suppose 20 units of product A can be produced by employing just labor and capital in the four ways shown below. Assume the prices of labor and c...
14 Suppose Ryan and Rita were randomly shown the numbers 68 and 21, respectively, and then asked to estimate the price of an item about which they have relatively limited knowledge. According to findi...
y Summative Assessment Quiz [due Day 7] Saved Help Save & Exit Sub A consumer's weekly Income is $350, and the consumer buys 6 bars of chocolate per week When weekly income increases to $380, the ...
Not sure about this one.. The income elasticity of demand for food is roughly 1. Suppose a consumer's monthly income is $2,000, of which 20 percent is spent on food. If the income of this consumer dou...
Assume that a consumer purchases a combination of products Y and Z and that the MU y/ Py = 25/5 and MUz/P z =40 /8. To maximize utility without spending more money, the consumers should Multiple choic...
Answer the question based on the table below showing the marginal utility schedules for product X and prouduct y for a hypothetical consumer. The price of product x is $3.50 and the price of product w...
A Cournot Oligopoly (duopoly) exists where the market demand function facing each firms is P = 4 - (Q 1  + Q 2 ) , where Q = (Q 1  + Q 2 ) and the MC facing each firm is zero.  If each firm take...
A Cournot Oligopoly (duopoly) exists where the market demand function facing each of the two firms is P = 4 - (Q 1  + Q 2 ) , where Q = (Q 1  + Q 2 ) and the MC facing each firm is zero.  If the...
Allocative Efficiency associated with competitive equilibrium is a condition where Question 25 options: Producer plus consumer surplus equals zero The price of output is greater than consumer surplu...
For a firm in a perfectly competitive industry Question 26 options: Its MC curve is its supply curve its ATC is its supply curve its long-run ATC curve is its long-run supply curve  its long-run...
As a firm differentiates its product relative to its competitor's product Question 27 options: Its cost curves shift downward relative to those of its competitors Its demand curve becomes more negativ...
When is it desirable for society to allow a monopoly to operate? Question 29 options: When the monopolist is self-regulated. When there are large cost savings from economies of scale When government...
Market power results in more restricted output and higher price than would prevail in a perfectly competitive industry. However, some market power is desirable for society if Question 30 options: go...
If each of 100 firms in a competitive industry has the following Marginal Cost function (i.e., firm supply function), P = 10 +100Q i What is the short-run industry supply function? (where lowercase s...
Entry into and exit from a perfectly competitive industry will: Allow efficient managers to earn economic profits Drive price to minimum Long-Run ATC Drive price to minimum Long-Run AVC Produce econom...
Which is  NOT TRUE  for a profit maximizing monopolist? Question 5 options: P > MC The firm operates on the demand curve where |e|  < 1 As Q increases, MR falls faster than Average Revenue ...
Suppose the income elasticity of demand for toys is +1.2. This means that Multiple Choice a 5 percent increase in income will increase the purchase of toys by 6 percent. a 5 percent increase in income...
Which of the following is not a typical characteristic of a market system? A. Government ownership of most property resources B. Private property C. Competition in product and resource markets D. Self...
Assume that a consumer has a given budget or income of $10 and that she can buy only two goods, apples or bananas. The price of an apple is $1.00 and the price of a banana is $0.50. What is the slope ...