Long-run producer surplus in a perfectly competitive industry accrues mainly to:
a. suppliers of inputs with inelastic supply curves.
b. suppliers of inputs with elastic supply curves.
c. firms' owners.
d. marginal consumers.
QUESTION 2Appendix: In comparing rules for serving a queue, last-come first-served has all of the following effects except
a. reduces the waiting time
b. causes few customers to arrive and depart more than once
c. increases the side payments among those yet to be served
d. hastens the adoption of a lottery system for deciding who should get the tickets
QUESTION 3An oral auction
a. is also called a Vickrey auction
b. is where bidders submit increasing bids until all but one remains
c. is where the highest bidder wins and pays the amount of the next highest bid
d. all of the above
QUESTION 4Long-run elasticity of supply is defined as:
a. percentage change in quantity demanded in the long run divided by percentage change in price.
b. percentage change in price divided by percentage change in quantity demanded in the long run.
c. percentage change in quantity supplied in the long run divided by percentage change in price.
d. percentage change in price divided by percentage change in quantity demanded in the long run.
QUESTION 5Appendix: Common value auctions with open bidding necessarily entail
a. asymmetric information
b. ascending prices
c. more than two bidders
d. amendment of bids
e. sealed final offers.
QUESTION 6A second-price auction
a. is also called a Vickrey auction
b. is conducted by bidders submitting a single sealed bid
c. is where the highest bidder wins and pays the amount of the next highest bid
d. all of the above
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