Question 1

If a good is price inelastic,an increase in price will decrease total revenues.

Accepted Answer

A) True 
 B)False

Question 2

The fast-food industry in the U.S.consists of many firms,but despite that it can still be viewed as an oligopoly because the top few firms control a significant share of the market.

Accepted Answer

A) True 
 B)False

Question 3

Increases in both labor and capital productivity will result in:

Accepted Answer

A) downward shift of the average and marginal product curves and upward shift of the average cost curves. 
B) downward shift of the average and marginal product curves and downward shift of the average cost curves. 
C) upward shift of the average and marginal product curves and downward shift of the average cost curves. 
D) upward shift of the average and marginal product curves and upward shift of the average cost curves.

Question 4

In 2012,all of fast-food chains expanded their hours of operation,with nearly 40% of all McDonald's restaurants being open 24 hours per day.This strategy was aimed at increasing sales because:

Accepted Answer

A) it was estimated that nearly one-fifth of all employed Americans worked primarily in the evening contributing to the demand for fast-food in late hours. 
B) it was estimated that consumers who shop at night tend to be more price sensitive. 
C) it was believed that longer hours of operation would lead to greater brand loyalty. 
D) none of the above.

Exam 16: Combining Micro and Macro Analysis for Managerial Decision Making

If a good is price inelastic,an increase in price will decrease total revenues.

The fast-food industry in the U.S.consists of many firms,but despite that it can still be viewed as an oligopoly because the top few firms control a significant share of the market.

Increases in both labor and capital productivity will result in:

In 2012,all of fast-food chains expanded their hours of operation,with nearly 40% of all McDonald's restaurants being open 24 hours per day.This strategy was aimed at increasing sales because: