ECO 365 Final Exam - ECO 365 final exam octotutor : Studentehelp

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2). Using 100 workers and 10 machines, a firm can produce 10,000 units of output; using 250 workers and 25 machines, the firm produces 21,000 units of output. These facts are best explained by: Economies of scope Diseconomies of scale Diminishing marginal productivity Economies of scale 3). Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that: despite the increase in price, quantity demanded rose due to some other factors changing. the demand for a college education is positively sloped. the law of demand is invalid. this situation has nothing to do with the law of demand. 4). A monopoly firm is different from a perfectly competitive firm in that: A monopolist’s demand curve is perfectly inelastic whereas a perfectly competitive firm’s demand curve is perfectly elastic. A competitive firm has a u-shaped average cost curve whereas a monopolist does not. A monopolist can influence market price whereas a perfectly competitive firm cannot. There are many substitutes for a monopolist’s product whereas there are no substitutes for a competitive firm’s product. 5). The best <strong>exam</strong>ple of positive externality is: Alcoholic beverages Pollution Education Roller coaster rides 6). The theory that quantity supplied and price are positively related, other things constant, is referred to as the law of:
supply profit maximization opportunity cost demand 7). A reduction in the supply of labor will cause wages to: Decrease and employment to decrease. Increase and employment to increase. Decrease and employment to increase. Increase and employment to decrease. 8). Other things held constant in a competitive labor market, if workers negotiate a contract in which the employer agrees to pay an hourly of $17.85 while the market equilibrium hour rate is $16.50, the: Quantity of workers demanded will exceed the quantity of workers supplied. Quantity of workers supplied will exceed the quantity of workers demanded. Supply of labor will decrease until the equilibrium wage rate is $17.85. Demand for labor will increase until the equilibrium wage rate is $17.85. 9). Alex is playing his music at full volume in his dorm room. The other people living on his floor found this to be a nuisance, but Alex doesn’t care. Alex’s music playing is an <strong>exam</strong>ple of: Pareto externality Positive externality Negative externality Normative externality 10). Oligopoly is probably the best market for technological change because: The typical oligopoly has the funds to carry out research and development and believe that its competitors are innovating, which motivates it to conduct research and development. The typical oligopoly lacks the funds to carry out research and development and therefore will use basic research from universities.
Page 1: Now answer is easy to find through
Page 5: 15). The law of diminishing margina

ECO 365 Final Exam - ECO 365 final exam octotutor : Studentehelp

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