1 .Social welfare (or surplus) = consumer surplus + producer surplus. A) True B)
ID: 1099572 • Letter: 1
Question
1 .Social welfare (or surplus) = consumer surplus + producer surplus.
A) True
B) False
2.
Patents can serve as a legal barrier to entry into an industry.
A) True
B) False
3.
The formation of a cartel is illegal in the United States.
A) True
B) False
4.
Product differentiation distinguishes between monopolistic competition and perfect competition.
A) True
B) False
5.
Only in perfectly competitive markets will firms in the market be producing at the minimum of the average total cost (ATC) curve in the long run.
A) True
B) False
6.
Ease of entry/exit in perfect competition eliminates long-run economic profits or losses for monopolistically competitive firms.
A) True
B) False
7.
The profit maximization rule applies to all firms, regardless of the market structure the firm is in.
A) True
B) False
8.
Among the four market structures, the one that is associated with the least amount of competition is monopolistic competition.
A) True
B) False
9.
The price leadership model of firms' behavior is associated with oligopoly markets.
A) True
B) False
10.
Immunization of children is an example of a positive externality.
A) True
B) False
11.
For the perfectly competitive firm, P = MR = D.
A) True
B) False
12.
A market with a monopoly firm will result in higher prices and more output produced than if the market were perfectly competitive.
A) True
B) False
13.
Market failure occurs whenever a market does not produce the socially optimal quantity of a good or service at the socially optimal price.
A) True
B) False
14.
"Sticky prices" are associated with markets with a single seller.
A) True
B) False
15.
For a monopoly firm, the price it charges for its good will be higher than the marginal cost of producing the good.
A) True
B) False
16.
In the short run, firms in perfectly competitive markets cannot leave the industry.
A) True
B) False
Explanation / Answer
1 .Social welfare (or surplus) = consumer surplus + producer surplus.
A) True
2.
Patents can serve as a legal barrier to entry into an industry.
A) True
3.
The formation of a cartel is illegal in the United States.
A) True
4.
Product differentiation distinguishes between monopolistic competition and perfect competition.
A) True
5.
Only in perfectly competitive markets will firms in the market be producing at the minimum of the average total cost (ATC) curve in the long run.
A) True
6.
Ease of entry/exit in perfect competition eliminates long-run economic profits or losses for monopolistically competitive firms.
A) True
7.
The profit maximization rule applies to all firms, regardless of the market structure the firm is in.
A) True
8.
Among the four market structures, the one that is associated with the least amount of competition is monopolistic competition.
B) False
9.
The price leadership model of firms' behavior is associated with oligopoly markets.
B) False
10.
Immunization of children is an example of a positive externality.
A) True
11.
For the perfectly competitive firm, P = MR = D.
A) True
12.
A market with a monopoly firm will result in higher prices and more output produced than if the market were perfectly competitive.
A) True
13.
Market failure occurs whenever a market does not produce the socially optimal quantity of a good or service at the socially optimal price.
A) True
14.
"Sticky prices" are associated with markets with a single seller.
B) False
15.
For a monopoly firm, the price it charges for its good will be higher than the marginal cost of producing the good.
A) True
16.
In the short run, firms in perfectly competitive markets cannot leave the industry.
B) False
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