Exam 24: Extension D: Review

-Vito's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. If the market price is $22.50 per pizza, how much economic profit per day does the firm make?

-If a marginal cost pricing rule is imposed on the firm in the figure above, the deadweight loss will be

-If the firm in the figure above is unregulated, the deadweight loss will be

-In some industries it is important for each firm to predict how all the other firms will react to their decisions.

-For the monopoly shown in the figure above, the profit maximizing price is

-Given the information in the table above, suppose labor is the only variable input. The price of labor is $400 per week and total fixed costs are $1,000 per week. What is the marginal cost of producing the 120th unit?

Cheating by a member of a cartel ________ consumer surplus and ________ the total economic profit earned by all the firms in the cartel.

-Monopolistic competition is a market structure in which a ________ number of firms compete and each firm produces ________ product.

-If an average cost pricing rule is imposed on the firm in the figure above, the price will be

-The firm shown in the figure above is

-If an average cost pricing rule is imposed on the firm in the figure above, the deadweight loss is

Ms. Lollipop opened a candy store in December 2013. She rented a building for $25,000 a year and used $30,000 from her savings account, which earned an annual interest rate of 5 percent, to buy capital equipment. During the first year of operation, Lollipop paid $28,000 to her employees, $10,000 for utilities, and $16,000 for goods she bought from other firms. In December 2014, the market value of Lollipop's capital equipment was $26,000. Lollipop's best alternative to running her candy store is to work as a sales clerk at Winn-Dixie for $15,000 a year. What is Lollipop's total opportunity cost?

-If a marginal cost pricing rule is imposed on the firm in the figure above, the price will be

A cartel tries to ________ its members' economic profit and thereby the cartel ________ consumer surplus.

Ms. Lollipop opened a candy store in December 2013. She rented a building for $25,000 a year and used $30,000 from her savings account, which earned an annual interest rate of 5 percent, to buy capital equipment. In December 2014, the market value of her capital equipment was $26,000. What is the economic depreciation of Lollipop's capital?

-If the firm in the figure above is unregulated, it will produce

Oligopoly is a market structure in which a ________ number of firms compete and there ________ barriers to entry.

-If a marginal cost pricing rule is imposed on the firm in the figure above, the firm's economic profit is