The figure above shows a labor market. If this labor market is perfectly competitive, the wage rate is
A) 4 per hour.
B) 6 per hour.
C) 8 per hour.
D) 10 per hour.
Ques. 2Perfect price discrimination
A) turns all the producer surplus into consumer surplus.
B) turns all the consumer surplus into economic profit.
C) creates a deadweight loss.
D) cannot result in profit maximization.
Ques. 3Which of the following will NOT increase a worker's human capital?
A) more work experience
B) more training
C) more schooling
D) a higher wage rate
Ques. 4The table above shows Danielle's utility from ice cream and romance novels.
a) What is Danielle's marginal utility from the 4th novel?
b) The price of ice cream is 5 per gallon and a novel is 10. If Danielle's budget for these two goods is 50 and she buys 2 gallons of ice cream, how many novels can she buy? If she buys 6 gallons of ice cream, what is her marginal utility per dollar spent on novels?
c) Which combination of the two goods is better: 4 gallons of ice cream and 3 novels or 6 gallons of ice cream and 2 novels?
Ques. 5If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut
A) is greater than marginal cost.
B) is greater than short-run average cost.
C) is greater than long-run average cost.
D) equals long-run average cost.
Ques. 6The price effect is the effect of a ________ on the quantity of the good ________.
A) decrease in the price; demanded
B) change in the price; supplied
C) change in price and income; consumed
D) change in the price; consumed
Ques. 7If the demand is unit elastic, a price cut will leave the quantity demanded unchanged.
Indicate whether the statement is true or false
Ques. 8A contestable market is a market in which there are one or a few firms and entry into the market is not costly.
Indicate whether the statement is true or false
Ques. 9Technological efficiency occurs when the firm produces a given output by using the least amount of inputs.
Indicate whether the statement is true or false
Ques. 10The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for cod, a common resource. The efficient outcome is ________.
A) 0 tons per week
B) 300 tons per week
C) 400 tons per week
D) None of the above answers is correct.
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