Eco 561 Final Exam

ECO 561 Final Exam



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ECO/561

1) If a firm in a purely competitive industry is confronted with an equilibrium hurt of $5, its marginal receipts:

A. ordain be greater than $5

B. lead also be $5

C. give be less than $5

D. may be every greater or less than $5



2) A firm that is move by self interest should:

A. always use double amounts of cheap inputs and pocket-sized amounts of expensive inputs in producing its output

B. hire from each one input so the productivity of each is equal at the margin

C. always use large amounts of the most productive inputs and small amounts of the least productive inputs in producing its output

D. employ the combination of resources that result produce the profit-maximizing output at the minimum cost



3) If charge is above the equilibrium level, competition among merchandiseers to reduce the resulting:

A. shortage exit increase amount demanded and decrease beat supplied

B. surplus will increase quantity demanded and decrease quantity supplied

C. surplus will decrease quantity demanded and increase quantity supplied

D.



shortage will decrease quantity demanded and increase quantity supplied



4) Camilles Creations and Julias Jewels both sell string of beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they cant keep up with the quantity demanded at that price), then we would expect both Camilles and Julias to:

A. lower their price and increase their quantity supplied

B. raise their price and reduce their quantity supplied

C. lower their price and reduce their quantity supplied

D. raise their price and increase their quantity supplied



5) Since their introduction, prices of DVD players have fallen and the quantity purchased has increased. This statement:

A. constitutes an expulsion to the law of supply in that they suggest a down(prenominal) sloping...If you want to get a full essay, order it on our website: Orderessay



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