Question 1

In which of the following markets is a consumer less sensitive to price?

Accepted Answer

A) Airlines 
B) Refrigerators 
C) Health Care 
D) Computer components 
E) Washing Machines 
A) Airlines 
B) Refrigerators 
C) Health Care 
D) Computer components 
E) Washing Machines

Question 2

Suppose a firm's plant produces Q units in any given year.The plant itself operates with annualized costs of $10M and other annual fixed expenses totaling $3M.In addition,the firm's variable costs depend on Q and are given by the formula 5Q²+3Q.What is the formula for the firm's Short-Run (i.e.one year)Average Costs?

Accepted Answer

The answer of Suppose a firm's plant produces Q units...

Question 3

Which of the following best describes marginal revenue?

Accepted Answer

A) How sales revenue varies as a function of how much product is sold 
B) The incremental sales from producing one more unit of output 
C) Rate of change in total revenue that results from the sale of ΔQ additional units of output 
D) The total sales for a given product based on plant output 
E) Percentage change in quantity divided by percentage change in price 
A) How sales revenue varies as a function of how much product is sold 
B) The incremental sales from producing one more unit of output 
C) Rate of change in total revenue that results from the sale of ΔQ additional units of output 
D) The total sales for a given product based on plant output 
E) Percentage change in quantity divided by percentage change in price

Question 4

At what point can a firm achieve a profit maximizing quantity?

Accepted Answer

A) MR>MC B) MC=D C) MRMC B) MC=D C) MR

Question 5

What is a sunk cost?

Accepted Answer

A) A cost that can be avoided if certain choices are made 
B) A cost that always varies with the output of a factory 
C) The average cost of operating a plant 
D) The "lower envelope" of short-run average cost functions 
E) A cost incurred no matter what the decision is and cannot be avoided 
A) A cost that can be avoided if certain choices are made 
B) A cost that always varies with the output of a factory 
C) The average cost of operating a plant 
D) The "lower envelope" of short-run average cost functions 
E) A cost incurred no matter what the decision is and cannot be avoided

In which of the following markets is a consumer less sensitive to price?

Which of the following best describes marginal revenue?

At what point can a firm achieve a profit maximizing quantity?

What is a sunk cost?

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters

Exam 1: Basic Microeconomic Principles

In which of the following markets is a consumer less sensitive to price?

Which of the following best describes marginal revenue?

At what point can a firm achieve a profit maximizing quantity?

What is a sunk cost?

Economies of Scale and Scope

Agency and Coordination

The Power of Principles - an Historical Perspective

The Vertical Boundaries of the Firm

Organizing Vertical Boundariesvertical Integration and Its Alternatives

Diversificationpart Threemarket and Competitive Analysis

Competitors and Competition

Strategic Commitment

The Dynamics of Pricing Rivalry

Entry and Exit

Industry Analysispart Fourstrategic Position and Dynamics

Strategic Positioning for Competitive Advantage

Sustaining Competitive Advantage

The Origins of Competitive Advantage, innovation, evolution, and Environment part Five internal Organization

Performance Measurement and Incentives in Firms

Strategy and Structure

Environment, power, and Culture

Filters