Maximizing total revenue is the same as maximizing profit.
a. True
b. False
QUESTION 2A signal is
a. anything used to show employees in a market that demand in a profession has increased
b. anything used to show employees in a market that supply in a profession has increased
c. a proxy used to indicate possession of unobservable qualities required for a particular job
d. a way for employers to discriminate against certain groups of people
e. a way for employees to learn to stay out of certain professions
QUESTION 3Individual firms in a perfectly competitive market can
a. purchase all they want at the market price
b. sell all they produce at the market price
c. earn more profit if they charge a price above the market price
d. earn more profit if they charge a price below the market price
e. earn no profit in the short run
QUESTION 4A monopolist has complete control over both price and quantity of output.
a. True
b. False
QUESTION 5Universities sometimes hire professors who are poor teachers but have good research skills because
a. research ability is more important in education than teaching ability
b. students don't listen to professors anyway
c. teaching can be learned; research ability cannot
d. research skills are easier to measure than teaching skills
e. research skills are difficult to measure
QUESTION 6Because market price remains constant as a perfectly competitive firm expands output, each firm faces
a. a downward-sloping demand curve
b. a horizontal demand curve
c. constant returns to scale
d. constant costs
e. diminishing marginal revenue
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