Question 1

A high four-firm concentration ratio implies

Accepted Answer

A)  an absence of product differentiation. 
B)  a presence of product differentiation. 
C)  an absence of competition. 
D)  a presence of competition. 
A)  an absence of product differentiation. 
B)  a presence of product differentiation. 
C)  an absence of competition. 
D)  a presence of competition.

Question 2

Which of the following best defines "economies of scope"?

Accepted Answer

A)  As output expands the cost of producing a good decreases. 
B)  As output expands the cost of producing a unit of a good decreases. 
C)  Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases. 
D)  Costs increase as firms seek to find more consumers. 
A)  As output expands the cost of producing a good decreases. 
B)  As output expands the cost of producing a unit of a good decreases. 
C)  Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases. 
D)  Costs increase as firms seek to find more consumers.

Question 3

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

Accepted Answer

A) True 
 B)False

Question 4

A normal profit for a self-employed entrepreneur is I. an opportunity cost.
II) part of the implicit rental rate of the funds invested in the business.

Accepted Answer

A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II 
A)  only I 
B)  only II 
C)  both I and II 
D)  neither I nor II

Question 5

Which of the following statements is CORRECT?

Accepted Answer

A)  Command systems are used only in the military. 
B)  An incentive system is a method of organizing production that uses a market-like mechanism inside the firm. 
C)  Selling organizations usually don't use incentive systems. 
D)  A production line is a good example of how an incentive system works. 
A)  Command systems are used only in the military. 
B)  An incentive system is a method of organizing production that uses a market-like mechanism inside the firm. 
C)  Selling organizations usually don't use incentive systems. 
D)  A production line is a good example of how an incentive system works.

A high four-firm concentration ratio implies

Which of the following best defines "economies of scope"?

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

A normal profit for a self-employed entrepreneur is I. an opportunity cost. II) part of the implicit rental rate of the funds invested in the business.

Which of the following statements is CORRECT?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters

Exam 10: Organizing Production

A high four-firm concentration ratio implies

Which of the following best defines "economies of scope"?

Technological efficiency occurs when it is not possible for a firm to get more output from the inputs it is currently using.

A normal profit for a self-employed entrepreneur is I. an opportunity cost. II) part of the implicit rental rate of the funds invested in the business.

Which of the following statements is CORRECT?

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Output and Costs

Perfect Competition

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters