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IVLEAssessment

EC1301PostLectureQuiz6(GRADED)

AssessmentTitle:
PostLectureQuiz6(GRADED)
NumberofAttempts:
1outof3
StudentName:
LIUXINCHENG
Duration:
27m38s
StartTime:
23Feb201611:35PM
TotalMarks:
9outof10

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Section1
1)Anindividualseller'sproducersurplusonaunitofagoodis
greaterthanthebuyer'sconsumersurplusonthatunit
zeroinperfectcompetition
zeroinmonopoly
anexampleofasidepayment
thedifferencebetweenthepricethesellerreceivesandthecostofproducingthatunit.

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YourAnswer: zeroinperfectcompetition
YourMarks: 0outof1
2)Ifaperfectlycompetitivemarketisinequilibriumandthenmarketdemandincreases,which
ofthefollowingwouldhappen?
producerandconsumersurpluswouldremainunchanged
producersurpluswoulddefinitelyincreaseandconsumersurplusmayincreaseor
decrease
consumersurpluswoulddefinitelyincreaseandproducersurplusmayincreaseor
decrease
consumersurpluswoulddefinitelydecreaseandproducersurplusmayincreaseor
decrease
producersurpluswoulddefinitelydecreaseandconsumersurplusmayincreaseor
decrease
Your producersurpluswoulddefinitelyincreaseandconsumersurplusmayincreaseor
Answer: decrease
YourMarks 1outof1
:

3)

IfthemonopolisticallycompetitivefirminFigure118istypicalofitscompetitors,theindustry
willlikelyexperience
exitofexistingfirms
exitofallfirms
nochangeinthelongrun
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constantreturnstoscale
entryofnewfirms
YourAnswer: nochangeinthelongrun
YourMarks: 1outof1

4)

Figure112illustratesamonopolisticallycompetitivefirm.Inordertomaximizeprofit,or
minimizeloss,thefirmwill
produce5unitsofoutputandcharge$650
produceapproximately7.5unitsofoutputandchargenearly$600
produceapproximately12.5unitsofoutputandchargeapproximately$425
closedown
produceapproximately10unitsofoutputandchargeapproximately$500
YourAnswer: produceapproximately10unitsofoutputandchargeapproximately$500
YourMarks: 1outof1
5)Inthelongrun,equilibriumforamonopolisticallycompetitivefirmresemblesequilibriumfor
amonopolyinthesensethat
marginalcostexceedsmarginalrevenue
priceequalsmarginalcost
averagerevenueexceedsprice
priceexceedsmarginalcost
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bothtypesoffirmsareabletoearneconomicprofits
YourAnswer: priceexceedsmarginalcost
YourMarks: 1outof1
6)Supposethataperfectlycompetitivemarketisinequilibrium.Then,
theequilibriumquantityprovidesthemaximumpossiblebenefittobuyersandsellers
combined
anadditionalunit,ifproduced,wouldproduceabenefitthatexceedsitscostofproduction
total(producer+consumer)surplusisequaltopricexquantity.
anadditionalunitcouldbeproducedatacosttosomeproducerthatislessthanthebenefit
tosomeconsumer
theequilibriumquantityprovidesthemaximumpossiblebenefittobuyers
Your theequilibriumquantityprovidesthemaximumpossiblebenefittobuyersand
Answer: sellerscombined
YourMarks 1outof1
:
7)Monopolisticcompetitionexistswhenthereisonelargefirminanotherwiseperfectly
competitivemarket.
False
True
YourAnswer: False
YourMarks: 1outof1
8)Consideramarketwithapriceceiling.Ifthepriceceilingisraisedwhichofthefollowing
wouldhappen?
Theconsumersurpluswoulddecrease,theproducersurpluswouldincreaseandthedead
weightlosswoulddecrease
Theconsumersurplus,theproducersurplusandthedeadweightlosswouldallincrease
Theconsumersurpluswouldincrease,theproducersurpluswoulddecreaseandthedead
weightlosswouldincrease
Theconsumersurpluswouldincrease,theproducersurpluswoulddecreaseandthedead
weightlosswoulddecrease
Theconsumersurplus,theproducersurplusandthedeadweightlosswouldalldecrease

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Your Theconsumersurpluswoulddecrease,theproducersurpluswouldincreaseandthe
Answer: deadweightlosswoulddecrease
Your 1outof1
Marks:
9)Thesupplycurveindicates
thevalueofeachunitofagoodorservice
howmuchpeoplearewillingtopayforagoodorservice
themaximumpricesomesellercanexpecttoreceivefromsupplyingeachunitofagoodor
service
thepricethatwillbechargedforeachunitofagoodorservice
theminimumpricesomesellermustreceiveinordertosupplyeachunitofagoodor
service
Your theminimumpricesomesellermustreceiveinordertosupplyeachunitofagood
Answer: orservice
YourMarks 1outof1
:

10)

ThefirminFigure112ismonopolisticallycompetitive.Thediagramillustratesa
longruneconomicprofit
shortruneconomicprofit
shutdowncase
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shortruneconomicloss
longruneconomicloss
YourAnswer: shortruneconomicprofit
YourMarks: 1outof1

Close

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