Economics and Correct Answer Essay - 1399 Words

The assumption of rationality in economics implies that: Answer Selected Answer: people make choices with an eye toward attaining objectives they have chosen. Correct Answer: people make choices with an eye toward attaining objectives they have chosen. Question 2 0 out of 10 points Carla had received very low annual return from her investment portfolio comprising of stocks of five companies for two years. Her decision to continue holding the same portfolio of assets will be an example of: Answer Selected Answer: bounded rationality. Correct Answer: systematically missed opportunities. Question 3 10 out of 10 points Assume that a cargo ship carrying the merchandise†¦show more content†¦Correct Answer: the highest-cost firm in operation breaks even, while the low cost firms will earn profit. . Question 14 . 0 out of 10 points If there are only a few producers of substitutes for Good X, a merger between producers of Good X and any one of them could significantly _____ for Good X. Answer Selected Answer: increase the elasticity of supply. Correct Answer: decrease the elasticity of demand. . Question 15 . 0 out of 10 points A set of producers is competitive if: Answer Selected Answer: the good produced by one can be differentiated from the other. Correct Answer: each supplies a substitute for what the others produce. Question 16 . 0 out of 10 points Refer to Figure 6-1. Which of the following conclusions can be drawn from this figure? The following figure shows the demand, marginal revenue, and marginal cost curves for a profit maximizing monopolist. Figure 6-1 Answer Selected Answer: The monopolist produces at the point where marginal cost is zero. Correct Answer: The monopolist incurs a fixed marginal cost of OC’. Question 17 . 10 out of 10 points The demand curve faced by a perfectly competitiveShow MoreRelatedEconomic: Economics and Correct Answer824 Words   |  4 Pagespoints A monopoly will usually produce Answer Selected Answer: where its demand curve is elastic. Correct Answer: where its demand curve is elastic. Question 2 10 out of 10 points Suppose a firm is currently maximizing its profits (i.e., following the MR=MC rule). Assuming that it wants to continue maximizing its profits, if its fixed costs increase, it should Answer Selected Answer: maintain the same price. Correct Answer: maintain the same price. QuestionRead MoreEssay about Marginal Cost and Correct Answer1404 Words   |  6 PagesQuestion 1 5 out of 5 points Economic profit is defined as the difference between revenue and ____. Answer Selected Answer: total economic cost Correct Answer: total economic cost Question 2 5 out of 5 points Recently, the American Medical Association changed its recommendations on the frequency of pap-smear exams for women. The new frequency recommendation was designed to address the family histories of the patients. The optimal frequency should be where the marginal benefit of anRead MoreEco 550 Quiz 1 (2013) Essay examples691 Words   |  3 Pagesbe designed to: Correct Answer: create incentives so that managers act like owners of the firm. Question 2 3 out of 3 points In the shareholder wealth maximization model, the value of a firms stock is equal to the present value of all expected future ____ discounted at the stockholders required rate of return. Correct Answer: profits (cash flows) Question 3 3 out of 3 points The primary objective of a for-profit firm is to ___________. Correct Answer: maximize shareholderRead Moremr jorge1265 Words   |  6 Pages Selected Answer: 310 utils. Correct Answer: 300 utils. Question 2 1 out of 1 points    Root beer    Candy bars Quantity Total Marginal Quantity Total Marginal    utility utility    utility utility 0 0 0 0 0 0 1 60 60 1 80 80 2 110 50 2 150 70 3 150 40 3 200 50 4 180 30 4 230 30 5 200 20 5 240 10    Reference: Ref 6-8 (Table) In the table, both root beer and candy bars exhibit: Selected Answer: diminishingRead More0 out of 5 points1002 Words   |  5 Pagesmain drawback to utilitarian reasoning is that: Answer Selected Answer:   Ã‚   The majority may override the rights of those in the minority. Correct Answer:   Ã‚   It is difficulty to accurately measure both costs and benefits. ï‚ · Question 2 5 out of 5 points Business executives are finding that a trusting, ethical relationship with a business partner is: Answer Selected Answer:   Ã‚   Often essential in conducting business. Correct Answer:   Ã‚   Often essential in conducting business. Read MoreMarginal Cost and Correct Answer Essay1420 Words   |  6 Pagesprimary objective of a for-profit firm is to ___________. Selected Answer: Correct Answer: 5 out of 5 points maximize shareholder value maximize shareholder value Question 2 5 out of 5 points The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers? Selected Answer: Correct Answer: innovation theory of profit innovation theory of profit QuestionRead MoreEconomics Midterm1619 Words   |  7 Pages5 points Economic profit is defined as the difference between revenue and ________________. Selected Answer: total economic cost Correct Answer: total economic cost Question 2 5 out of 5 points In the shareholder wealth maximization model, the value of a firms stock is equal to the present value of all expected future ___________ discounted at the stockholders required rate of return. Selected Answer: profits Correct Answer: profits Read MoreEconomics 50501680 Words   |  7 Pagesadvertising budget the firm management should not consider Answer Selected Answer: the added revenue from increased sales Correct Answer: interest payments on the firms loan. Response Feedback: Is this fixed cost that the firm has to pay regardless of advertising? †¢ Question 2 0 out of 1 points If marginal cost is equal to average total cost, then Answer Selected Answer: a. marginal cost is minimized. Correct Answer: b. average total cost is minimized. †¢ QuestionRead MoreFinal Exam Eco1441 Words   |  6 PagesMarks: 1 In the case of agricultural goods: Choose one answer. a. the value of exports is greater than the value of imports b. the value of exports is lower than the value of imports c. the value of exports is equal to the value of imports d. the value of exports and the value of imports are not measurable Correct Marks for this submission: 1/1. 2 Marks: 1 The internal rate of return equals the cost of capital when Choose one answer. a. NPV = 0. b. NPV 0. c. NPV 0. myclasses.caluniversityRead MoreFranklin D. Roosevelt and Score1029 Words   |  5 PagesResponse | Value | Correct Answer | Feedback | A. | from Franklin D. Roosevelt. | |    |    | B. | through conversations between Truman and Stalin. | |    |    | C. | from the British and French. | |    |    | D. | through the use of espionage. | |    |    | E. | when the first one was dropped on Japan. | |    |    | | Score: | 0/5 | Comments: | |    | | C2. | |    | George Kennan believed firmly that | |    | Student Response | Value | Correct Answer | Feedback |