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2/16/2016
IVLE Assessm ent
EC1301 - Post-Lecture Quiz 5 (GRADED)
Assessment Title :
Post-Lecture Quiz 5 (GRADED) Number of Attempts :
3 out of 3 Student Name :
LIU XINCHENG Duration :
2m 59s Start Time :
16-Feb-2016 10:03 PM Total Marks :
10 out of 10
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Section 1 1) Equilibrium in Monopoly Markets
In the short run, a monopoly may only earn economic losses. only earn zero economic profit, only earn positive economic profits. earn positive economic profits or economic losses. https://ivle.nus.edu.sg/v1/Assessm https://i vle.nus.edu.sg/v1/Assessm ent/Student/resul ent/Student/result_details.aspx?assess t_details.aspx?assessmenti mentid=bbaa4a d=bbaa4a39-a078-4d7d 39-a078-4d7d-ab12-cb5bf97c6b6 -ab12-cb5bf97c6b67&sessionid= 7&sessionid=f7ed5 f7ed5dac-4a6f-43e4-9a… dac-4a6f-43e4-9a…
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Your Answer : earn positive economic profits or economic losses. Your Marks : 1 out of 1 2) In an increasing cost industry , the long-run supply curve is
positively sloped. horizontal. vertical. negatively sloped. Your Answer : positively sloped. Your Marks : 1 out of 1 3) Price Discrimination
Movie theaters charge lower prices to children and senior citizens because they have more time to attend movies. they go to more movies, so they get price breaks. they feel sorry for them. their elasticity of demand for movie tickets is higher. Your Answer : their elasticity of demand for movie tickets is higher. Your Marks : 1 out of 1 4) What Happens When Things Change?
An increase in a monopoly's fixed costs would cause its output to stay the same. fall. impossible to predict. rise. Your Answer : stay the same. Your Marks : 1 out of 1 5) Assume that one firm in a perfectly competitive market adopts a technological innovation
that enables it to produce at a lower cost per unit than competing firms in the short run. Which of the following statements is correct? https://ivle.nus.edu.sg/v1/Assessm ent/Student/result_details.aspx?assessmentid=bbaa4a39-a078-4d7d-ab12-cb5bf97c6b67&sessionid=f7ed5dac-4a6f-43e4-9a…
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2/16/2016
IVLE Assessment
The innovating firm will earn above-normal profit in the long run. Only new firms entering the industry with new-technology plants will be able to compete with the innovating firm. This is an example of a decreasing cost industry. Competing firms will need to adopt the new technology in the long run in order to survive. All the competing firms will be forced to exit the market in the long run. Your Answer Competing firms will need to adopt the new technology in the long run in order to : survive. Your Marks : 1 out of 1 6) Figure 9-2
Output
Total Revenue
Total Cost
1 2 3 4 5 6
$ 20 $ 40 $ 60 $ 80 $100 $120
$ 40 $ 60 $ 70 $ 80 $ 85 $110
Figure 9-2 shows the total revenue and total cost data for a perfectly competitive firm. To
maximize profits, how many units of output should it produce? 6 5 1 3 4 Your Answer : 5 Your Marks : 1 out of 1
Figure 9-11 illustrates the long-run average total cost curve for a perfectly competitive firm
and the short-run average total cost curve (ATC*) for the firm's current plant size. In the long run, this firm will be able to stay in operation with the same plant size firm will earn an economic profit firm's plant size is too large to allow it to earn a normal profit firm will suffer an economic loss firm's plant size is too small to allow it to earn a normal profit Your Answer : firm's plant size is too large to allow it to earn a normal profit Your Marks : 1 out of 1
The All-the-Rage microbrewery is represented in Figure 9-9. If the market price is $2.50 per pint, then in the short run, the microbrewery will earn the same profit by producing zero pints as by producing 50 pints per day produce between zero and 50 pints per day produce zero pints per day to avoid an economic loss produce 50 pints per day and break even produce more than 50 pints per day Your Answer : earn the same profit by producing zero pints as by producing 50 pints per day Your Marks : 1 out of 1 10) Tommy's Tires operates in a perfectly competitive market. If the market price equals $50
per tire and ATC = $60 per tire at the profit-maximizing level of output, then in the long run average total costs will rise the market supply curve will shift to the right more firms will enter the market the equilibrium price per tire will fall the market supply curve will shift to the left Your Answer : the market supply curve will shift to the left Your Marks : 1 out of 1