Producer surplus is usually less than profit (True or false?)

Producer surplus is usually less than profit
 a. True
  b. False

QUESTION 2

Firms may easily enter a monopolistically competitive market.
 a. True
  b. False

QUESTION 3

The United States economy has experienced a decrease in competition over the last three decades.
 a. True
  b. False

QUESTION 4

Allocative efficiency occurs in markets when
 a. goods are produced using the least amount of society's scarce resources
  b. goods are produced at the lowest possible average total cost
  c. goods are produced at the lowest possible marginal cost
  d. the value to society of the last unit produced equals its marginal cost
  e. the value to society of the last unit produced is greater than its marginal cost

QUESTION 5

Cell phone companies offer pricing plan alternatives in order to convert some
 a. consumer surplus into profit
  b. producer surplus into profit
  c. economic profit into normal profit
  d. profit into consumer surplus
  e. consumer surplus into deadweight loss

QUESTION 6

According to William Shepherd, the total assets of the top 100 firms in the United States have been declining, mostly in response to increased imports.
 a. True
  b. False

QUESTION 7

In the long run, a perfectly competitive industry is allocatively efficient because
 a. the opportunity cost of resources needed to produce the last unit of output just equals the marginal value to consumers of the last unit
  b. it maximizes producer surplus
  c. consumer surplus could be larger if the price were lower
  d. production occurs at the lowest average total cost
  e. marginal costs are low

QUESTION 8

Which of the following is not an example of price discrimination?
 a. IBM charges business users of its laser printer more than home users
  b. Intel offered faster and slower versions of a computer chip
  c. An amusement park charges the same admission fee to local residents and out-of-towners
  d. Adobe stripped some features from Photoshop to offer a cheaper version
  e. Holders of Nevada driver's licenses pay less to ride the Las Vegas monorail