A.the boost in full output attributable to the employment of one more worker.

You are watching: Average fixed costs diminish continuously as output increases.

B.the rise in full revenue attributable come the employment of one an ext worker.

C.the boost in full cost attributable to the employed of one more worker.

D.total product separated by the variety of workers employed.

Feedback:See page 201.

Question 5 the 20

4.45 Points

The law of diminishing returns shows that:

A.as extra devices of a variable source are included to a addressed resource, marginal product will decline beyond part point.

B.because that economies and diseconomies of scale a vain firm"s long-run average complete cost curve will certainly be U-shaped.

C.the demand for goods created by purely competitive industries is downsloping.

D.beyond some suggest the extra utility obtained from additional units of a product will yield the customer smaller and smaller extra amounts of satisfaction.

Feedback:See web page 204.

Question 6 that 20

4.45 Points

If average complete cost is declining, then:

A.marginal expense must be greater than average total cost.

B.the average fixed price curve should lie above the median variable price curve.

C.marginal cost must be much less than average total cost.

D.total cost must also be declining.

Feedback:See page 208.

Question 7 that 20

4.45 Points

Average fixed prices diminish repeatedly as output increases.

True

False

Feedback:See web page 208.

Question 8 the 20

4.45 Points

True

False

Feedback:See web page 246 - 247.

Question 9 the 20

4.45 Points

A purely competitive firm is a price maker, but a monopolist is a price taker.

True

False

Feedback:See web page 226.

Question 10 that 20

4.45 Points

The profit-maximizing dominion MC = grandfather is complied with by firms under:

A.monopolistic competition, however not perfect competition.

B.perfect competition, yet not monopolistic competition.

C.either monopolistic competition or perfect competition, depending on the expenses of production.

D.both monopolistic competition and also perfect competition.

Feedback:Great job. See page 277.

Question 11 of 20

4.35 Points

A perfectly competitive certain will proceed producing in the quick run as lengthy as it have the right to cover its:

A.total cost.

B.average total cost.

C.average variable cost.

D.average fixed cost.

Feedback:Great work! see bottom of web page 235.

Question 12 of 20

4.45 Points

A perfectly competitive firm will certainly earn a profit and will proceed producing the profit-maximizing quantity of output in the brief run if price is:

A.greater than marginal cost.

B.less than marginal cost.

C.less than median variable cost.

D.greater than average full cost.

Feedback:Great days! See web page 233.

Question 13 that 20

4.45 Points

Monopolistic competition is one industry identified by:

A.a product with countless close substitutes.

B.a horizontal demand curve.

C.a small number of firms.

D.barriers to entry and also exit.

Feedback:Great work. See web page 276.

Question 14 that 20

4.45 Points

If a perfect competitive firm increases production indigenous 10 systems to 11 units, and also the industry price is $20 per unit, full revenue because that 10 devices is:

A.$10.

B.$20

C.$200.

D.$210.

Feedback:Very good. See page 230.

Question 15 of 20

4.45 Points

The need curve encountering a monopolist is:

A.horizontal, the same as that encountering a perfectly competitive firm.

B.downward sloping, the exact same as that facing a perfectly competitive firm.

C.upward sloping, the exact same as that facing a perfect competitive firm.

D.downward sloping, uneven the horizontal need curve encountering a perfect competitive firm.

Feedback:Good work. See page 259.

Question 16 the 20

4.45 Points

Suppose that a monopolist boosts production native 10 units to 11 units. If the industry price decreases from $30 per unit come $29 every unit, marginal revenue for the eleventh unit is:

A.$1.

B.$9.

C.$19.

D.$29.

Feedback:Good work. See page 260.

Question 17 of 20

4.45 Points

Most electric, gas, and also water carriers are instances of:

A.unregulated monopolies.

B.natural monopolies.

C.restricted-input monopolies.

D.sunk-cost monopolies.

Feedback:Good job. See web page 254.

Question 18 the 20

4.45 Points

If a perfect competitive for sure is creating a amount that generates ns > MC, climate profit:

A.is maximized.

B.can be increased by raising the price.

C.can be boosted by diminish the price.

D.can be raised by raising production.

Feedback:Great job! See web page 233.

Question 19 that 20

10.0 Points

Evaluate the following statement using economic reasoning: "A monopolist have the right to charge every little thing she wants because she is the only source available."

A monopolist deserve to charge whatever she wants but even monopolist decrease their prices in order to sell much more of the product. This is additionally a great example that why marginal revenue is under the need curve in a monopolistic market! She can charge whatever she desires in because that a while, yet the sector will inevitably force the border of supply and also demand. Conveniently after this, she will realize that she cannot charge every little thing she look at fit.

Feedback:See the "Heads-Up!" section on web page 263.

Question 20 the 20

10.0 Points

Identify and describe a real civilization example of one oligopoly. What qualities of this sector fit the an interpretation of an oligopoly? What role does advertising play in this market? Is this constant with what did you do it learned around advertising and also oligopoly in this course?

A an excellent real human being example of one oligopoly is the technology/Cell phone industry. Competing companies like Samsung, Apple, and Google, have tendency to ascendancy the market. The peak spot in their industry is revolving and also they are all competing for it. “An oligopoly is situation in i m sorry a industry is dominated by a couple of firms, each of i beg your pardon recognizes the its very own actions will create a solution from its rivals and also that those responses will impact it” (Principles that Microeconomics, 283). Each firm is in competition with each other and also currently it seems to be cell phone leak season, the many recent Pixel indigenous Google shortly the next three providers will progressively leak or notice their brand-new products. The galaxy S8 and the IPhone8 are the newest ones to it is in released. The an essential is that they all tend to have a new machine entering the sector either one appropriate after the other or at the same time. Together the products involved market the consumers have actually to pick either to brand commitment or switch to the various other side or remain with the least expensive option.

“Firms in monopoly, monopolistic competition, and oligopoly use advertising when they suppose it to increase their revenues (Principles the Microeconomics, 290). In this oligopoly advertising, does not play a major role in this perfect competitive market. "everyone knows the firms in each industry develop identical products, and buyers have finish information about the alternatives obtainable to castle in the market" (Principles of Microeconomics, 290).

See more: Soci A Marxist Critique Of Weber’S Work On Social Stratification Is That

This is consistent with what we"ve learned around oligopoly and also advertising. "Advertising creates customer loyalty to a details brand, then that loyalty may serve as a barrier to entrance to various other firms" (Principles that Microeconomics, 291).