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- 1. Multiple Choice
A philosophy that government should not interfere with commerce or trade.
Competitive-price theory
Perfect competition theory
Laissez-faire
Monopoly theory
- 2. Multiple Choice
Which of the following is NOT a condition for a perfect market?
A large number of buyers and sellers
Buyers and sellers deal in identical products
Each buyer and seller acts independently
Buyers and sellers are reasonably well informed
Buyers and sellers must stay in their business unless authorized by the government to get out of that markets-ace
- 3. Multiple Choice
The cost added by producing one additional product or service.
Marginal cost
Marginal revenue
Relative cost
Relative revenue
- 4. Multiple Choice
The additional revenue that will be generated by increasing product sales by one unit.
Profit
Marginal Revenue
Relative Revenue
Profit Maximization
- 5. Multiple Choice
Mark has just hired a new employee and his output has increased from 105 to 119. His marginal cost was $4.19 but his revenue was $18. What should mark do?
Keep the amount of employees he has since he is making a profit.
Fire his new employee due to the new marginal cost being to high.
Hire more employees until marginal cost equals marginal revenue
Fire several employees to keep production costs down
- 6. Multiple Choice
What must be true to reach profit maximization?
MC > MR
MR > MC
MR < MC
MC = MR
- 7. Multiple Choice
The real or imagined differences between competing products in the same industry.
Nonprice competition
Product differentiation
Marketing differential
Oligopoly
- 8. Multiple Choice
Large firms can work together called _________________. The desire to do so is to raise prices which is called ____________________.
Collusion; price fixing
Cartels; price setting
Teamwork; price-fixer-upper
Oligopolies; price determination
- 9. Multiple Choice
Which of the following is most likely an example of a monopoly?
A Starbucks across from Dunkin Donuts
A gas station in the country by itself
3 fast food restaurants all on the same street
A Kroger 4 miles away from a Walmart
- 10. Multiple Choice
There are 3 types of monopolies identify which of the following answer is correct.
Natural- production of a product from a single firm
Geographical- ownership or control of a
manufacturing method, process, or other scientific
advance.
Technological- monopoly based on the absence of other sellers in a certain geographic area
Natural- production of a product from a single firm
Geographical- monopoly based on the absence of other sellers in a certain geographic area
Technological- ownership or control of a
manufacturing method, process, or other scientific
advance.
Natural- ownership or control of a
manufacturing method, process, or other scientific
advance.
Geographical- production of a product from a single firm
Technological- monopoly based on the absence of other sellers in a certain geographic area
Natural- ownership or control of a
manufacturing method, process, or other scientific
advance.
Geographical- monopoly based on the absence of other sellers in a certain geographic area
Technological- production of a product from a single firm
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