Economics Homework Help?

Posted on 2014-12-15 06:54:00 in Economics by TOYA

Choose the correct answer.

Q1. Which of the following combinations is incorrect?

a. Monopolistic competition - Differentiated products

b. Monopoly - Unique products

c. Perfect competition - Homogeneous products

d. Oligopoly - No close substitute





Q 2. Farmer Brady sells wheat in a market where sellers are price takers. Which of the following is true in regard to Farmer Brady s production and pricing decisions?

a. Farmer Brady will be able to increase the total revenue from the sale of his wheat if he increases the price of the wheat.

b. Since the market dictates the price of his product, Farmer Brady will have no incentive to minimize per-unit production costs.

c. Since the market dictates the price of his product, Farmer Brady has no production decisions to make.

d. It would be senseless for Farmer Brady to try to increase sales by lowering the price of his product. His entire output can be sold at the market price.





3. If the ice cream industry is monopolistically competitive, then:

a. the price of ice cream equals marginal cost in equilibrium.

b. the price of ice cream equals average cost in long-run equilibrium.

c. the price of ice cream is less than marginal cost in equilibrium.

d. there are significant barriers to entering the ice cream business.

e. firms are price takers.

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