Monday, 29 July 2013

ECO 561 Chapter 3 Quiz




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CHAPTER 3 QUIZ
Question 1
The demand curve facing each wool producer is ________ starting at $3.00 per pound
Question 2
If a firm in a perfectly competitive industry raises price above market price,
Question 3
The fast food industry is not considered perfectly competitive because:
Question 4
You are certain that a normal rate of profit is 18% for the fast-food industry. What is your estimate of a normal rate of profit in the computer software industry, which is considered to be much riskier than the computer industry?
Question 5
Situation 1:
You are the owner an only employee of a company that writes computer software that is used by doctors to bill patients. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you quit a job at another computer software firm that paid $40,000 a year.
A yearly normal profit for your computer software firm would be
Question 6
The marginal product of the second worker is.
Question 7
Demand for the product of an industry in perfect competition is assumed to be inelastic.
Question 8

If the first worker produces five custom picture frames a day, and the second worker produces five additional custom picture frames a day, it is clear that diminishing marginal returns have set in.

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