Micro final NEMCC Questions With Complete Solutions
A decreasing-cost industry is one in which Correct Answer
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 Correct
Answer 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, Correct
Answer 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 Correct Answer more
inelastic the demand for the product.
A market Correct Answer is an institution that brings together
buyers and sellers.
A perfectly inelastic demand schedule Correct Answer can be
represented by a line parallel to the vertical axis.
A producer's minimum acceptable price for a particular unit of a
good Correct Answer equals the marginal cost of producing
that particular unit.
A producer's minimum acceptable price for a particular unit of a
good Correct Answer 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? Correct Answer $35
All firms have to incur costs because of Correct Answer the
resources they use.
All of the following statements apply to a purely competitive
market in the long run, except Correct Answer 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 Correct Answer a consumer
surplus of $10, and Tony experiences a producer surplus of
$190.
An explicit cost is Correct Answer a money payment made
for resources not owned by the firm itself.
An industry comprising 40 firms, each with about 2-3 percent of
the total market for a differentiated product, is an example of
Correct Answer monopolistic competition
An industry comprising a small number of firms, each of which
considers the potential reactions of its rivals in making price-
output decisions, is called Correct Answer An oligopoly
A decreasing-cost industry is one in which Correct Answer
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 Correct
Answer 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, Correct
Answer 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 Correct Answer more
inelastic the demand for the product.
A market Correct Answer is an institution that brings together
buyers and sellers.
A perfectly inelastic demand schedule Correct Answer can be
represented by a line parallel to the vertical axis.
A producer's minimum acceptable price for a particular unit of a
good Correct Answer equals the marginal cost of producing
that particular unit.
A producer's minimum acceptable price for a particular unit of a
good Correct Answer 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? Correct Answer $35
All firms have to incur costs because of Correct Answer the
resources they use.
All of the following statements apply to a purely competitive
market in the long run, except Correct Answer 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 Correct Answer a consumer
surplus of $10, and Tony experiences a producer surplus of
$190.
An explicit cost is Correct Answer a money payment made
for resources not owned by the firm itself.
An industry comprising 40 firms, each with about 2-3 percent of
the total market for a differentiated product, is an example of
Correct Answer monopolistic competition
An industry comprising a small number of firms, each of which
considers the potential reactions of its rivals in making price-
output decisions, is called Correct Answer An oligopoly
