ECO 204 Week 4 Quiz | Assignment Help | Ashford University
- ashford university / ECO 204
- 23 Aug 2020
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ECO 204 Week 4 Quiz | Assignment Help | Ashford University
Question 1
If a firm is making an
economic profit, then productive resources are earning __________.
o
their opportunity costs in the short run
o
less than their opportunity costs
o
more than their opportunity costs
o
their opportunity costs in the long run
Question 2
A perfectly competitive
market implies that neither buyers nor sellers have any influence over market
__________.
o
substitutes
o
competition
o
volume
o
price
Question 3
What kind of profits
are a signal for firms to move in or out of an industry?
o
economic
o
capital
o
accounting
o
operating
Question 4
Which of the following
is an example of a monopoly that loses money?
o
Apple
o
Microsoft
o
the U.S. Postal Service
o
the Olympic Games
Question 5
Which of the following
statements about monopolies is a FACT?
o
Monopolies have supply curves.
o
Monopolies charge the highest possible
price.
o
Monopolies do not have to worry about
demand.
o
Monopolies ultimately face competition.
Question 6
All of the following
are fallacies
about monopolies EXCEPT
__________.
o
monopolies do not have supply curves
o
monopolies always earn profits
o
monopolies will produce where the demand
is inelastic
o
monopolies charge the highest possible
price
Question 7
What is the theory of
rational decision making during a time of uncertainty called?
o
firm theory
o
marginal productivity theory
o
prisoners’ dilemma theory
o
game theory
Question 8
Industry studies that
employ concentration ratios MOSTLY use __________ firms to measure the ratio.
o
three
o
eight
o
four
o
the largest
Question 9
When firms exit a
monopolistically competitive industry, the __________.
o
profits of the remaining firms will fall
o
long-run normal profits of the remaining
firms will increase
o
demand curves of the remaining firms
will shift to the right
o
output of the remaining firms will fall
Question 10
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 right.
o
They will shift down and to the left.
o
They will shift up and to the left.
o
They will shift up and to the right.
USA 
India