ECON 210 - Module 5 & 6 Quizzes. Questions with Answers. Complete Solutions Guide.
Question 1
If natural monopolies are regulated to produce where there is resourceallocative
efficiency, they produce where
price equals marginal cost.
price equals average total cost.
marginal revenue equals ...
if natural monopolies are regulated to produce where there is resourcealloca
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ECON 210
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Question 1
If natural monopolies are regulated to produce where there is resource-
allocative efficiency, they produce where
price equals marginal cost.
price equals average total cost.
marginal revenue equals average total cost.You Answered
marginal revenue equals marginal cost.
Question 2
pts
The Sherman Act of 1890
set up the Federal Trade Commission (FTC) to deal with "unfair methods of
competition."
prohibited suppliers from offering special discounts to large chain stores
without offering them to everyone else.
empowered the FTC to deal with false and deceptive acts or practices.
made interlocking directorates illegal.ct!
made monopolization of trade a misdemeanor.
Question 3
If there are six firms in an industry and the market shares of the firms are 32
percent, 25 percent, 19 percent, 9 percent, 8 percent and 7 percent, the
Herfindahl index is
10,000.
2,204.
8,600.
2,091.
85.
Question 4
The Federal Trade Commission Act of 1914
prohibited suppliers from offering special discounts to large chain stores
without offering them to everyone else.
,made monopolization of trade a misdemeanor.
made interlocking directorates illegal.Correct!
set up the Federal Trade Commission (FTC) to deal with "unfair methods of
competition."
empowered the FTC to deal with false and deceptive acts or practices.
Question 5
The Wheeler-Lea Act of 1938 empowered the Federal Trade Commission to
decrease the failure rate of small businesses by protecting them from
competition from large and growing chain stores.
deal with false and deceptive advertising.
regulate the trucking and railroad industries.
deal with anticompetitive mergers that occurred as a result of one company
acquiring the physical assets of another company.
deal with unfair methods of competition and to determine which actions
taken by businesses were too aggressive.
Question 6
(2) Quantity of (4) Marginal
(1) Units of Factor X (3) Product Price
Output Revenue Product
0 0 $8
1 20 $8 (A)
2 37 $8 (B)
3 47 $8 (C)
4 53 $8 (D)
Refer to Exhibit 26-1. What dollar value goes in blank (C)?
$30
$80
$300
$10
,Question 7
An increase in the demand for a good will lead to a
leftward shift of the MRP of labor curve.
rightward shift of the MRP of labor curve.
movement down and along a given MRP of labor curve.
movement up and along a given MRP of labor curve.
Question 8
If for a firm MRP > MFC, then the firm
Y
should produce less output by decreasing the quantity of factors employed.
should produce more output by increasing the quantity of factors employed.
is maximizing profits and should continue producing its current output.
is minimizing factor costs and therefore is maximizing profits.
Question 9
If the market supply of labor increases, the total wage income will increase if
the
supply of labor is inelastic.
supply of labor is elastic.
demand for labor is inelastic.rrect!
demand for labor is elastic.
Question 10
The addition to total cost that results from employing one additional unit of a
resource is called
average total cost.
average factor cost.
marginal factor cost.
marginal cost.
Question 1
, Which antitrust legislation was passed to decrease the failure rate of small
businesses by protecting them from competition from large and growing
chain stores?
the Federal Trade Commission Act.
the Sherman Act.
none of these options.
the Robinson-Patman Act.
the Clayton Act.
Question 2
The Federal Trade Commission Act of 1914
set up the Federal Trade Commission (FTC) to deal with "unfair methods of
competition."
empowered the FTC to deal with false and deceptive acts or practices.
prohibited suppliers from offering special discounts to large chain stores
without offering them to everyone else.
made interlocking directorates illegal.
made monopolization of trade a misdemeanor.
IncorrectQuestion 3
The type of merger most likely to reduce competition in an industry is a(n)
__________ merger.
horizontal
conglomerate
international
vertical
Question 4
The Wheeler-Lea Act of 1938
made interlocking directorates illegal.
prohibited suppliers from offering special discounts to large chain stores
without offering them to everyone else.
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