ECON 110 ZIRLOTT TEST 3 EXAM STUDY GUIDE | VERIFIED QUESTIONS & ANSWERS | GRAPHS, CALCULATIONS & KEY CONCEPTS EXPLAINED | A+ GUARANTEED PASS

ECON 110 ZIRLOTT TEST 3 EXAM STUDY GUIDE | VERIFIED
QUESTIONS & ANSWERS | GRAPHS, CALCULATIONS & KEY
CONCEPTS EXPLAINED | A+ GUARANTEED PASS
WHICH OF THE FOLLOWING GOODS WOULD BE CONSIDERED TO BE IN A MONOPOLISTICALLY
COMPETITIVE MARKET?

A. PEPSI

B. NINTENDO WII

C. SOYBEANS

D. POLAROID

CORRECT ANS>> A




UNLIKE A PERFECTLY COMPETITIVE MARKET, A MONOPOLY CREATES A DEADWEIGHT LOSS
BECAUSE IT __________________.

A. PRODUCES A HIGHER OUTPUT AND CHARGES A HIGHER PRICE

B. PRODUCES A LOWER OUTPUT AND CHARGES A HIGHER PRICE

C. PRODUCES WHERE PRICE EQUALS MARGINAL COST AND NOT WHERE MARGINAL REVENUE
EQUALS MARGINAL COST

D. HAS NO SUPPLY CURVE

CORRECT ANS>> B




WHICH OF THE FOLLOWING STATEMENTS IS TRUE? A MONOPOLY FIRM...

A. IS A PRICE TAKER AND HAS NO SUPPLY CURVE

B. HAS NO SUPPLY CURVE AND ITS MARGINAL REVENUE IS NEVER GREATER THAN THE PRICE

C. HAS A DOWNWARD SLOPING SUPPLY CURVE AND A DOWNWARD SLOPING DEMAND CURVE

, D. HAS NO SUPPLY CURVE AND ITS MARGINAL REVENUE EQUALS THE PRICE

CORRECT ANS>> B




WHEN A MOVIE THEATER PRICE DISCRIMINATES BY OFFERING A STUDENT DISCOUNT, THE
MOVIE THEATER IS DISCRIMINATING BASED ON THE STUDENT'S

A. RACE

B. MARGINAL COST

C. WILLINGNESS TO PAY

D. CONSUMER SURPLUS

CORRECT ANS>> C




AS OUTPUT INCREASES IN THE SHORT RUN, AVERAGE FIXED COSTS:

A. RISE

B. FALL

C. REMAIN CONSTANT

D. RISE THEN FALL AS OUTPUT INCREASES

CORRECT ANS>> B




AN EXAMPLE OF AN IMPLICIT COST OF PRODUCTION WOULD BE.....? THE COST OF:

A. LEATHER USED IN MANUFACTURING FURNITURE

B. GASOLINE TO TRANSPORT GOODS TO THE MARKET

C. PAYING MINIMUM WAGE TO HIGH SCHOOL STUDENTS THAT WORK IN A FAST FOOD
RESTAURANT