How can you compute the total utility derived from consuming five hamburgers using marginal utilities?
What will be an ideal response?
Ques. 2A technological change that increases productivity ________ marginal product and ________ marginal cost.
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
Ques. 3Compared to a monopsony, a perfectly competitive labor market results in a
A) higher wage rate and more workers hired.
B) higher wage rate and fewer workers hired.
C) lower wage rate and more workers hired.
D) lower wage rate and fewer workers hired.
Ques. 4Based on the data in the above table, to assure that the efficient amount is produced the government can
A) subsidize the suppliers 8 per unit.
B) subsidize the suppliers 2 per unit.
C) tax suppliers 2 per unit.
D) tax suppliers 8 per unit.
Ques. 5In monopolistic competition, advertising costs
A) are fixed costs.
B) are variable costs.
C) affect the firm's ATC curve.
D) All of the above answers are correct.
Ques. 6Paying salespeople a fixed wage contract, one in which income does not depend on the volume of sales, avoids
A) both adverse selection and moral hazard.
B) neither adverse selection nor moral hazard.
C) adverse selection but not moral hazard.
D) moral hazard but not adverse selection.
Ques. 7Why do most collusive agreements have difficulty surviving?
What will be an ideal response?
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