ECON 1002 WEEK 4 QUIZ WITH ANSWERS – MGMT 3503 (30/30)

ECON 1002 WEEK 4 QUIZ WITH ANSWERS – MGMT 3503 (30/30) • Question 1 3 out of 3 points Suppose the market price of lobster suddenly increases substantially. We can expect that most lobstermen will: Selected Answer: spend more hours catching lobster and supply more lobsters. Correct Answer: spend more hours catching lobster and supply more lobsters. • Question 2 3 out of 3 points All of the following are characteristics of perfectly competitive markets except: Selected Answer: all firms produce a differentiated product. Correct Answer: all firms produce a differentiated product. • Question 3 3 out of 3 points In a firm's production planning horizon, the "long-run" refers to Selected Answer: the period during which all of the firm's inputs can be varied. Correct Answer: the period during which all of the firm's inputs can be varied. • Question 4 3 out of 3 points Assume Firm A has half the fixed costs of Firm B, but they have the same variable costs and total revenue for all quantities. Which of the following statements is true? Selected Answer: Firm A will produce the same quantity as Firm B. Correct Answer: Firm A will produce the same quantity as Firm B. • Question 5 3 out of 3 points Suppose a barber shop that has fixed cost equal to $900/month and total costs equal to $4,000/month. This shop will continue to operate in the short run as long its total revenue is greater than: Selected Answer: $3,100/month. Correct Answer: $3,100/month.