Questions with Verified Answers, 2026
Quiz_________________?
(Four-firm) Concentration Ratio -
Answer✅
A measure of industry market power. (Sum the market share of the four largest firms and a
ratio above 40% is a good indicator of oligopoly)
Quiz_________________?
A good is price elastic if... -
Answer✅
If Ed > 1
Quiz_________________?
A good is price inelastic if... -
Answer✅
If Ed < 1
Quiz_________________?
A good is unit price elastic if... -
1
, Answer✅
If Ed = 1
Quiz_________________?
Accounting Profits -
Answer✅
The difference between total revenue and total explicit costs
Quiz_________________?
Allocative efficiency -
Answer✅
The economy is producing the optimal mix of goods and services (the combination of goods
and services that provides the most net benefit to society; the best point on the PPF)
Quiz_________________?
As AP is falling AVC is -
Answer✅
Rising
Quiz_________________?
As AP is rising AVC is -
Answer✅
Falling
2
, Quiz_________________?
As MP is falling MC is -
Answer✅
Rising
Quiz_________________?
As MP is rising MC is -
Answer✅
Falling
Quiz_________________?
As the concentration ratio increases, the degree of monopoly pride-setting power... -
Answer✅
Increases
Quiz_________________?
As the demand curve becomes more horizontal -
Answer✅
The price elasticity increases and consumers become more price elastic
Quiz_________________?
As the demand curve becomes more vertical -
Answer✅
The price elasticity falls and consumers become more price inelastic
3
, Quiz_________________?
Assumptions of a Competitive Labor Market -
Answer✅
firms are price takers in both the product and factor markets; firms cannot impact the price
of their product or price paid to employ more input; they will employ as much labor as
necessary at the competitive wage.
Quiz_________________?
Average Fixed Costs (AFC) -
Answer✅
Total fixed costs divided by output. AFC = TFC/Q. It continuously falls as output rises
Quiz_________________?
Average Product (of Labor) -
Answer✅
Total product divided by the amount of labor employed. AP = TP / L
Quiz_________________?
Average Total Costs (ATC) -
Answer✅
Total costs divided by output ATC = TC/Q also ATC = AFC + AVC
Quiz_________________?
4
Quiz_________________?
(Four-firm) Concentration Ratio -
Answer✅
A measure of industry market power. (Sum the market share of the four largest firms and a
ratio above 40% is a good indicator of oligopoly)
Quiz_________________?
A good is price elastic if... -
Answer✅
If Ed > 1
Quiz_________________?
A good is price inelastic if... -
Answer✅
If Ed < 1
Quiz_________________?
A good is unit price elastic if... -
1
, Answer✅
If Ed = 1
Quiz_________________?
Accounting Profits -
Answer✅
The difference between total revenue and total explicit costs
Quiz_________________?
Allocative efficiency -
Answer✅
The economy is producing the optimal mix of goods and services (the combination of goods
and services that provides the most net benefit to society; the best point on the PPF)
Quiz_________________?
As AP is falling AVC is -
Answer✅
Rising
Quiz_________________?
As AP is rising AVC is -
Answer✅
Falling
2
, Quiz_________________?
As MP is falling MC is -
Answer✅
Rising
Quiz_________________?
As MP is rising MC is -
Answer✅
Falling
Quiz_________________?
As the concentration ratio increases, the degree of monopoly pride-setting power... -
Answer✅
Increases
Quiz_________________?
As the demand curve becomes more horizontal -
Answer✅
The price elasticity increases and consumers become more price elastic
Quiz_________________?
As the demand curve becomes more vertical -
Answer✅
The price elasticity falls and consumers become more price inelastic
3
, Quiz_________________?
Assumptions of a Competitive Labor Market -
Answer✅
firms are price takers in both the product and factor markets; firms cannot impact the price
of their product or price paid to employ more input; they will employ as much labor as
necessary at the competitive wage.
Quiz_________________?
Average Fixed Costs (AFC) -
Answer✅
Total fixed costs divided by output. AFC = TFC/Q. It continuously falls as output rises
Quiz_________________?
Average Product (of Labor) -
Answer✅
Total product divided by the amount of labor employed. AP = TP / L
Quiz_________________?
Average Total Costs (ATC) -
Answer✅
Total costs divided by output ATC = TC/Q also ATC = AFC + AVC
Quiz_________________?
4
