Micro final NEMCC questions with verified
answers
A decreasing-cost industry is one in which Ans✓✓✓input prices fall or
technology improves as the industry expands
A firm that has the long-run cost curves shown in the graph would be
able to do or have the following, except Ans✓✓✓attain lower unit costs
by reducing its output level.
A fundamental difference between the command system and laissez-
faire capitalism is that, in command systems, Ans✓✓✓the division of
output is decided by central planning rather than by individuals
operating freely through markets.
A leftward shift in the supply curve of product X will increase
equilibrium price to a greater extent the Ans✓✓✓more inelastic the
demand for the product.
A market Ans✓✓✓is an institution that brings together buyers and
sellers.
A perfectly inelastic demand schedule Ans✓✓✓can be represented by a
line parallel to the vertical axis.
A producer's minimum acceptable price for a particular unit of a good
Ans✓✓✓equals the marginal cost of producing that particular unit.
, A producer's minimum acceptable price for a particular unit of a good
Ans✓✓✓equals the marginal cost of producing that particular unit.
Alex, Kara, and Susie are the only three people in a community. Alex is
willing to pay $40 for the third unit of a public good; Kara is willing to
pay $25. If the marginal cost of producing the third unit is $100, what is
the minimum amount that Susie must be willing to pay for it to be
efficient for government to produce the third unit? Ans✓✓✓$35
All firms have to incur costs because of Ans✓✓✓the resources they
use.
All of the following statements apply to a purely competitive market in
the long run, except Ans✓✓✓total fixed costs remain constant even
when output expands in the long run
Amanda buys a ruby for $330 for which she was willing to pay $340.
The minimum acceptable price to the seller, Tony, was $140. Amanda
experiences Ans✓✓✓a consumer surplus of $10, and Tony experiences
a producer surplus of $190.
An explicit cost is Ans✓✓✓a money payment made for resources not
owned by the firm itself.
answers
A decreasing-cost industry is one in which Ans✓✓✓input prices fall or
technology improves as the industry expands
A firm that has the long-run cost curves shown in the graph would be
able to do or have the following, except Ans✓✓✓attain lower unit costs
by reducing its output level.
A fundamental difference between the command system and laissez-
faire capitalism is that, in command systems, Ans✓✓✓the division of
output is decided by central planning rather than by individuals
operating freely through markets.
A leftward shift in the supply curve of product X will increase
equilibrium price to a greater extent the Ans✓✓✓more inelastic the
demand for the product.
A market Ans✓✓✓is an institution that brings together buyers and
sellers.
A perfectly inelastic demand schedule Ans✓✓✓can be represented by a
line parallel to the vertical axis.
A producer's minimum acceptable price for a particular unit of a good
Ans✓✓✓equals the marginal cost of producing that particular unit.
, A producer's minimum acceptable price for a particular unit of a good
Ans✓✓✓equals the marginal cost of producing that particular unit.
Alex, Kara, and Susie are the only three people in a community. Alex is
willing to pay $40 for the third unit of a public good; Kara is willing to
pay $25. If the marginal cost of producing the third unit is $100, what is
the minimum amount that Susie must be willing to pay for it to be
efficient for government to produce the third unit? Ans✓✓✓$35
All firms have to incur costs because of Ans✓✓✓the resources they
use.
All of the following statements apply to a purely competitive market in
the long run, except Ans✓✓✓total fixed costs remain constant even
when output expands in the long run
Amanda buys a ruby for $330 for which she was willing to pay $340.
The minimum acceptable price to the seller, Tony, was $140. Amanda
experiences Ans✓✓✓a consumer surplus of $10, and Tony experiences
a producer surplus of $190.
An explicit cost is Ans✓✓✓a money payment made for resources not
owned by the firm itself.
