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Take Test: Quiz – Chapter 10, 11, and 12
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Description |
Quiz – Chapter 10, 11, and 12 |
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Instructions |
Quiz – Chapter 10, 11, and 12
Chapter 10, 11, and 12 quizzes cover the theory and concepts you have read in chapter 10, 11, and 12. The quiz is open-book and must be completed on the first launch. This quiz is not timed however Blackboard may time-out after 2 hours 30 minutes so please watch the time carefully. The quiz can not be saved or restarted once it is launche d. The quiz is due Day 7, Sunday 11:59 pm ET. |
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Multiple Attempts |
Not allowed. This test can only be taken onc e. |
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Force Completion |
Once started, this test must be completed in one sitting. Do not leave the test before clicking Save and Submit. |
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Question 1
1. A “search good” is:
|
a. |
One that depends on how the product behaves over time |
|
b. |
A product whose quality is only found out over time by finding how durable it is |
|
c. |
Like a peach that can be examined for flaws |
| d. |
Like a used car, since it is easy to determine its inherent quality |
| e. |
None of the above |
5 points
Question 2
1. An “experience good” is one that:
a.
Only an expert can use
b.
Has undetectable quality when purchased
c.
Can be readily experienced simply by touching or tasting
d.
Improves with age, like a fine wine
e.
All of the above
5 points
Question 3
1. In long-run equilibrium, all firms in a pure competition market situation operating under a condition of certainty will have identical costs even though they may use different production and operation techniques.
a.
false
b.
true
5 points
Question 4
1. In the purely competitive case, marginal revenue (MR) is equal to:
a.
cost
b.
profit
c.
price
d.
total revenue
e.
none of the above
5 points
Question 5
1. The price for used cars is well below the price of new cars of the same general quality. This is an example of:
a.
Redeployment Assets
b.
The Degree of Operating Leverage
c.
The Unemployment Rate
d.
A Lemon’s Market
e.
Cyclical Competition
5 points
Question 6
1. What is the profit maximization point for a firm in a purely competitive environment?
a.
The output where AVC < P b. The output where P < MC c. The output where P = MC d. The output where P > MC
e.
The output where MR = MC
5 points
Question 7
1. Asset specificity is largest when
a.
value in first best use is large
b.
customers choose their supplier at random
c.
value in second best use is large
d.
customers are loyal to a particular seller
e.
very valuable assets are non-redeployable
5 points
Question 8
1. In the case of pure monopoly:
a.
the demand curve is always elastic
b.
one firm is the sole producer of a good or service which has no close substitutes
c.
the firm’s profit is maximized at the price and output combination where marginal cost equals marginal revenue
d.
a and b only
e.
a, b, and c
5 points
Question 9
1. Of the following, which is not an economic rationale for public utility regulation?
a.
production process exhibiting increasing returns to scale
b.
constant cost industry
c.
avoidance of duplication of facilities
d.
protection of consumers from price discrimination
e.
none of the above
5 points
Question 10
1. Regulatory agencies engage in all of the following activities
except
_______.
a.
controlling entry into the regulated industries
b.
overseeing the quality of service provided by the firms
c.
setting federal and state income tax rates on regulated firms
d.
setting prices that consumers will pay
e.
none of the above
5 points
Question 11
1. The demand curve facing the firm in ____ is the same as the industry demand curve.
a.
pure competition
b.
monopolistic competition
c.
oligopoly
d.
pure monopoly
e.
none of the above
5 points
Question 12
1. A monopoly will always produce less than a purely competitive industry, ceteris paribus.
a.
true
b.
false
5 points
Question 13
1. The practice by telephone companies of charging lower long-distance rates at night than during the day is an example of:
a.
inverted block pricing
b.
second-degree price discrimination
c.
peak-load pricing
d.
first-degree price discrimination
e.
none of the above
5 points
Question 14
1. When the cross elasticity of demand between one product and all other products is low, one is generally referring to a(n) ____ situation.
a.
monopoly
b.
pure competition
c.
oligopoly
d.
monopolistic competition
e.
substitution
5 points
Question 15
1. Which of the following is a source of market power for a monopolist?
a.
a firm may have a patent or copyright
b.
a firm may control critical resources
c.
a firm may have a government-authorized franchise
d.
a firm may enjoy economies of scale
e.
all of the above are sources of market power for a monopolist
5 points
Question 16
1. A(n) ____ is characterized by a relatively small number of firms producing a product.
a.
monopoly
b.
syndicate
c.
cooperative
d.
oligopoly
e.
none of the above
5 points
Question 17
1. An oligopoly is characterized by:
a.
a relatively small number of firms
b.
either differentiated or undifferentiated products
c.
actions of any individual firm will affect sales of other firms in the industry
d.
a and b
e.
a, b, and c
5 points
Question 18
1. In the absence of any legally binding enforcement mechanism, individual cartel producers may find it advantageous to cheat on the agreements and engage in secret price concessions.
a.
false
b.
true
5 points
Question 19
1. Which of the following is an example of an oligopolistic market structure?
a.
public utilities
b.
air transport industry
c.
liquor retailers
d.
wheat farmers
e.
none of the above
5 points
Question 20
1. A cartel is a situation where firms in the industry
a.
have a barometric price leader
b.
experience the pain of a kinked demand curve.
c.
obey the rules of dominant firm price leadership.
d.
have an agreement to restrict output.
e.
agree to produce identical products.
5 points
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