ECON 1002 WEEK 4 QUIZ WITH ANSWERS – MGMT 3503 (30/30)

ECON 1002 WEEK 4 QUIZ WITH ANSWERS –
MGMT 3503 (30/30)
 Question 1

3 out of 3 points

Suppose the market price of lobster suddenly increases substantially. We can expect that most
lobstermen will:
Selected Answer:
spend more hours catching lobster and supply more lobsters.
Correct Answer:
spend more hours catching lobster and supply more lobsters.

 Question 2

3 out of 3 points

All of the following are characteristics of perfectly competitive markets except:
Selected Answer:
all firms produce a differentiated product.
Correct Answer:
all firms produce a differentiated product.

 Question 3

3 out of 3 points

In a firm's production planning horizon, the "long-run" refers to
Selected Answer:
the period during which all of the firm's inputs can be varied.
Correct Answer:
the period during which all of the firm's inputs can be varied.

 Question 4

3 out of 3 points

Assume Firm A has half the fixed costs of Firm B, but they have the same variable costs and
total revenue for all quantities. Which of the following statements is true?