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AECN 141 Exam 3 Question With Correct Answers 100% Pass! 2024

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AECN 141 Exam 3 Question With Correct Answers 100% Pass! 2024 For whom does the term "externality" refer? - ANS-A Third Party In the price rigidity model of oligopoly, - ANS-All of the above What is the general term for the social cost of imperfect competition? - ANS-Dead Weigh Loss Which of th...

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AECN 141 Exam 3 Question With Correct Answers 100% Pass! 2024
For whom does the term "externality" refer? - ANS-✔✔A Third Party

In the price rigidity model of oligopoly, - ANS-✔✔All of the above

What is the general term for the social cost of imperfect competition? - ANS-✔✔Dead Weigh Loss

Which of the following is true about oligopoly? - ANS-✔✔Firms are Interdependent

Levi's Jeans are a differentiated product. This means that, - ANS-✔✔Consumers think Levi's are unique

Case and John Deere typically pay attention to the price, features, and quality of each other's product.
This is an example of what concept of oligopoly? - ANS-✔✔Interdependence

What happens to the price is the market featured above the cost of production increases from MC2 to
MC1 - ANS-✔✔It stays the same

Why is the private cost of attending UNL offset by government payments and funds? - ANS-✔✔College
provides external social benefit the student cannot realize

How much pollution represents the optimal amount in society? - ANS-✔✔The amount whereby the
benefit exceeds the cost

Eggland's best eggs have only 60 calories per egg, more vitamin E, less saturated fat, and double the
Omega-3s. They do this by manipulating the diet of chickens. What will happen to Eggland's ability to
charge higher prices for eggs in the future? - ANS-✔✔B or C

, The market price of widgets is a perfectly competiteve market is $1. Widgets sold in a monopolistic
market sell for $10. Widgets sold in Iowa sell for $5. In Nebraska, they sell for $3. What can you say
about the number of firms producing widgets in Nebraska and Iowa? Assume demand for widgets in
Nebraska and Iowa are equivalent. - ANS-✔✔There are more firms selling widgets in Nebraska versus
Iowa

Which sporting competition most closely resembles oligopolistic behavior? - ANS-✔✔American
Football

Which Economist posed that with well established property rights and low transaction costs, disputes
arising from the existence of externalities would be solved without court proceedings? - ANS-✔✔
Ronald Coase

Nintendo released a miniature version of their classic game console two years ago at a price of $60. The
console has consistently sold out, and many experts believe there will be a persistent shortage,
extending past Christmas. This is an example of a market failure due to what? - ANS-✔✔Inflexible
Markets

In the 1970's, there was a company that sold Imaginary Dogs. An "Imaginary Dog" was a dog leash/collar
that was rigid as if a dog was actually pulling the person along. The market for imaginary dogs no longer
exists. This is likely because - ANS-✔✔Demand for imaginary dogs fell below a price firms could profit

For most agricultural producers, the marginal revenue of producing one more unit of output is
____________ - ANS-✔✔Constant

For any firm, where does the supply curve start? - ANS-✔✔At the minimum of Average variable cost

A monopolist can charge whatever price they desire, and are not at the mercy of the market - ANS-✔✔
False

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