ECO 204 Week 4 Quiz | Assignment Help | Ashford University
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- 03 Dec 2020
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ECO 204 Week 4 Quiz | Assignment Help | Ashford University
Week 4 - Quiz
Question 1
The marginal cost curve
above the minimum average variable cost __________.
o
is the firm’s short-run supply curve.
o
indicates points where the firm will
realize an economic profit.
o
is equal to the firm’s marginal revenue
curve.
o
covers the area where a firm should shut
down.
Question 2
Just as an industry is
made up of all the firms that produce and sell homogenous goods, the __________
supply curve of an industry is the sum of supply curves for all firms in the
industry.
o
long-run
o
short-run
o
long-run market
o
short-run market
Question 3
Consider that firms
that make newsprint paper sheets are leaving the industry due to economic
losses. What will happen to the market supply curve?
o
It will shift to the left.
o
It will shift to the right.
o
It will become horizontal.
o
It will become U shaped.
Question 4
Where will a monopolist
MOST want to operate?
o
in the inelastic range of the demand
curve
o
where average revenue equals marginal
revenue
o
where marginal cost equals marginal
revenue
o
at the highest price on the demand curve
Question 5
All of the following
are fallacies
about monopolies EXCEPT
__________.
o
monopolies do not have supply curves
o
monopolies charge the highest possible
price
o
monopolies always earn profits
o
e. monopolies will produce where the
demand is inelastic
Question 6
Monopolies often
contrive shortages by producing less than the competitive output to create
monopoly profits. This strategy is known as __________ resources.
o
distributing
o
restricting
o
misallocating
o
monopolizing
Question 7
Considering a
particular industry’s firms, what is the first step in calculating their
concentration ratio?
o
They are ranked in order of decreasing
size.
o
They are ranked in order of increasing
size.
o
Each firm’s percentage of total industry
size is listed.
o
Each firm’s percentage of total industry
sales is listed.
Question 8
A couple of new nail
salons open in a town with similar firms. As new firms enter the market, what
will probably happen to the existing firms’ demand curves?
o
They will shift down and to the left.
o
They will shift down and to the right.
o
They will shift up and to the left.
o
They will shift up and to the right.
Question 9
Retail outlets operate
in which of the following market structures?
o
oligopoly
o
monopolistic competition
o
monopoly
o
perfect competition
Question 10
Which type of market
structure has the LEAST control over pricing?
o
an oligopoly
o
perfect competition
o
a monopoly
o
monopolistic competition
USA 
India