ECO182 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Concentration ratios are used to determine
the extent (degree) of oligopoly.
Which of the following statements is true?
When production of a good yields positive externalities but output is currently at the
market level, then a change in output to the socially optimal level will be a net change
for the better.
Which of the following goods is least likely to be rivalrous in consumption?
a sunset
What is the herfindahl index of an industry made up of four equal-sized firms?
2,500
Because of one assumption in the theory of monopolistic competition, the excess
capacity theorem exists. What is the assumption?
Each firm produces and sells a slightly differentiated product.
Suppose the socially optimal output is 134 units of a good and the market output
is 95 units of the good. A possible reason the market produces "too little" is that
marginal private benefits are less than marginal social benefits.
cheating
is good for consumers
private cost
, supply
benefit
demand
monopolistic competitor
easy entry
market failure is a situation in which
the market does not does provide the ideal or optimal amount of a particular good
which of the following statements is true
monopolistic competitive firms that earn economic profits in the short run commonly will
find their profits competed away in the long run
which of the following assumptions do the market structures of monopolistic
competition and perfect competition share?
many buyers and sellers
It seems quite possible that cigarette companies concealed information about the
effects of smoking on health, causing cigarette prices to be __________ and
cigarette sales to be __________ than would have been the case under symmetric
information.
higher, higher
In which of the following situations would a positive externality most likely be
involved?
There are eight houses in the neighborhood where Rodney lives. Rodney likes nice-
looking yards, and last week his neighbors began to beautify their yards.
COMPLETE SOLUTIONS VERIFIED LATEST UPDATE
Concentration ratios are used to determine
the extent (degree) of oligopoly.
Which of the following statements is true?
When production of a good yields positive externalities but output is currently at the
market level, then a change in output to the socially optimal level will be a net change
for the better.
Which of the following goods is least likely to be rivalrous in consumption?
a sunset
What is the herfindahl index of an industry made up of four equal-sized firms?
2,500
Because of one assumption in the theory of monopolistic competition, the excess
capacity theorem exists. What is the assumption?
Each firm produces and sells a slightly differentiated product.
Suppose the socially optimal output is 134 units of a good and the market output
is 95 units of the good. A possible reason the market produces "too little" is that
marginal private benefits are less than marginal social benefits.
cheating
is good for consumers
private cost
, supply
benefit
demand
monopolistic competitor
easy entry
market failure is a situation in which
the market does not does provide the ideal or optimal amount of a particular good
which of the following statements is true
monopolistic competitive firms that earn economic profits in the short run commonly will
find their profits competed away in the long run
which of the following assumptions do the market structures of monopolistic
competition and perfect competition share?
many buyers and sellers
It seems quite possible that cigarette companies concealed information about the
effects of smoking on health, causing cigarette prices to be __________ and
cigarette sales to be __________ than would have been the case under symmetric
information.
higher, higher
In which of the following situations would a positive externality most likely be
involved?
There are eight houses in the neighborhood where Rodney lives. Rodney likes nice-
looking yards, and last week his neighbors began to beautify their yards.
