ECON 315 Final Review - Custom Scholars
Home » Flash Cards » ECON 315 Final Review

# ECON 315 Final Review

question
In a competitive market, the market demand is Q^4=60-6p, and Supply is Q^5=4P. With a price ceiling of \$3...
Shortage of 30 units: 60-18=42 --> 42-12=30
question
In a competitive market , the market demand is Q4=60-6P and the market supply is Q^4=4P, the full economic price under the price ceiling of \$3 is ...
8
question
When Marginal benefit = 300-12Q, and Total Cost = 12Q+108, optimal level of Q is:
24 MB=MC
question
Which of the following is NOT a source of rivalry in economic transactions
Government-Producer Rivalry
question
Given the benefit functions B(Y)=200Y-3Y^2, the Marginal Benefit is
200-6Y (take derivative)
question
Compute the present value of a perpetual bond that pays a monthly cash flow of \$1000 of an annual interest rate of 12 percent
=\$100,000 (1000/0.1 since 12 months/percent =0.1 percent per month )
question
The law of Demand states that, holding all else constant
As price falls, Quantity Demanded rises
question
If the interest rate is 5 percent, \$100 received at the end of seven years is worth how much today?
100/(1+0.05)^7
question
As the interest rate increases, the opportunity cost of writing to receive future amount
Increases
question
The optimal amount of studying is determined by comparing
Marginal benefit and marginal cost of studying
question
If Marginal Benefit excused Marginal Cost, it is more profitable to
Increase Q
question
In order to maximize net benefits, the marginal control variable should be used to the point where
Net Marginal Benefits equals Zero
question
If the annual interest rate is 0 percent, the percent value of receiving \$1.10 in the next year is
\$1.10
question
Which of the following is (are) true?
All of the statements associated with the question are correct.
question
If the interest rate is 10 percent, and cash flows are \$1000 at the end of the year one, and \$2000 at the end of year two, then the present value of the cash flows is
\$2,562 ( 1000/[1.10] + 2000/[1.10^2] =2561.78)
question
If good A is an inferior good, an increase in income leads to:
A decrease in demand for good A
question
Suppose the demand for good x is given by Q^4=10+axPt + ayPy + amM. If ay is Positive, then
Goods are substitutes, y and x
question
Which of the following are signals to the owners of scarce resources about the best uses of those resources ?
question
Technological advances will cause the supply curve to
Shift to the right
question
Suppose the demand for good x is in lnQx^2=21-0.8lnPx-1.6lnPy+6.2lnM+0.4A. Then we know that the own price elasticity for good X is
Inelastic
question
Suppose the Marginal Product of labor is 8 and the marginal product of capital is 2. If the wage rate is \$4, and the price of capital is \$2, then in order to minimize costs, the firm should use:
More labor and less capital (Down MPL = 8=27, UpL W=4 )
question
Suppose the production function is Q=min {K,2L}. How Much output is produced when 4 units of labor and 9 units of capital are employed ?
=8 (Q=min {9,2(4)} =8)
question
Suppose the production function is given Q=3K +4L. What is the average product of capital when 10 units of capital and 10 units of labor are employed?
=7 ( Q=3(10)+4(10)=70 APK=Q/k= 70/10=7)
question
You are the manager at a firm that sells its product in a competative market at a price of \$50. Your cost function is C=40+5Q^2. The profit maximizing output is ...
Q=5 (P=MC 50/10=10Q/10)
question
If the last unit of input increase total product, we know the marginal product is
Postitive
question
The absolute value of the slope of the Isoquant is the
-Marginal rate of the technical substitution
question
The combinations of inputs that produce a given level of outputs are depicted by
-Isoquants
question
Which of the following forms of payment is NOT an incentive plan?
Flat Salary, for a plant manager
question
The Leontief production function implies
L-Shaped isoquants
question
Suppose the long-run average cost curve is U-Shaped when LRAC is in increasing stage, there exists
Diseconomies of scale
question
For given input prices, isocosts farther from the origin are associated with:
Hiigher costs
question
Refer to the figure above, the firm should shut down in the short-run if the market price is
less than \$4.50 (Below AVC)
question
The industry elasticity of demand for telephone service is -2 while the elasticity of demand for a specific phone company is -5. What is the Rothchild index?
=0.4 (R=ET/EF= -2/-5=0.4)
question
Long-term contracts become longer:
When specialized investments becomes more important
question
The disadvantage of vertical integration is that:
Firms no longer specialize in what they do best
question
In the long-run, monopolistically competitive firms produce a level of output such that:
All of the statements are correct: (P>MC, P=ATC, ATC>minimum of average costs)
question
A negative side of a revenue-sharing plan is that it
Gives no incentive for workers to minimize costs
question
A Herfindal-Hirschman index of 10,000 suggests
A monopoly
question
Suppose each of the 50 states had only one gas station -- each of the same size. The four-firm concentration ratio would be :
=0.08 (4/50=0.08)
question
A Lerner index of 0 suggests
Perfect Competition
question

Price Value of the Firm

PVFirm= π[1+i/i-g]

question
Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
P = MC
question
You are the manager of a Mom and Pop store that can buy milk from a supplier at \$3.00 per gallon. If you believe the elasticity of demand for milk by customers at your store is −4, then your profit-maximizing price is:
\$4.00.
1 of 43
question
In a competitive market, the market demand is Q^4=60-6p, and Supply is Q^5=4P. With a price ceiling of \$3...
Shortage of 30 units: 60-18=42 --> 42-12=30
question
In a competitive market , the market demand is Q4=60-6P and the market supply is Q^4=4P, the full economic price under the price ceiling of \$3 is ...
8
question
When Marginal benefit = 300-12Q, and Total Cost = 12Q+108, optimal level of Q is:
24 MB=MC
question
Which of the following is NOT a source of rivalry in economic transactions
Government-Producer Rivalry
question
Given the benefit functions B(Y)=200Y-3Y^2, the Marginal Benefit is
200-6Y (take derivative)
question
Compute the present value of a perpetual bond that pays a monthly cash flow of \$1000 of an annual interest rate of 12 percent
=\$100,000 (1000/0.1 since 12 months/percent =0.1 percent per month )
question
The law of Demand states that, holding all else constant
As price falls, Quantity Demanded rises
question
If the interest rate is 5 percent, \$100 received at the end of seven years is worth how much today?
100/(1+0.05)^7
question
As the interest rate increases, the opportunity cost of writing to receive future amount
Increases
question
The optimal amount of studying is determined by comparing
Marginal benefit and marginal cost of studying
question
If Marginal Benefit excused Marginal Cost, it is more profitable to
Increase Q
question
In order to maximize net benefits, the marginal control variable should be used to the point where
Net Marginal Benefits equals Zero
question
If the annual interest rate is 0 percent, the percent value of receiving \$1.10 in the next year is
\$1.10
question
Which of the following is (are) true?
All of the statements associated with the question are correct.
question
If the interest rate is 10 percent, and cash flows are \$1000 at the end of the year one, and \$2000 at the end of year two, then the present value of the cash flows is
\$2,562 ( 1000/[1.10] + 2000/[1.10^2] =2561.78)
question
If good A is an inferior good, an increase in income leads to:
A decrease in demand for good A
question
Suppose the demand for good x is given by Q^4=10+axPt + ayPy + amM. If ay is Positive, then
Goods are substitutes, y and x
question
Which of the following are signals to the owners of scarce resources about the best uses of those resources ?
question
Technological advances will cause the supply curve to
Shift to the right
question
Suppose the demand for good x is in lnQx^2=21-0.8lnPx-1.6lnPy+6.2lnM+0.4A. Then we know that the own price elasticity for good X is
Inelastic
question
Suppose the Marginal Product of labor is 8 and the marginal product of capital is 2. If the wage rate is \$4, and the price of capital is \$2, then in order to minimize costs, the firm should use:
More labor and less capital (Down MPL = 8=27, UpL W=4 )
question
Suppose the production function is Q=min {K,2L}. How Much output is produced when 4 units of labor and 9 units of capital are employed ?
=8 (Q=min {9,2(4)} =8)
question
Suppose the production function is given Q=3K +4L. What is the average product of capital when 10 units of capital and 10 units of labor are employed?
=7 ( Q=3(10)+4(10)=70 APK=Q/k= 70/10=7)
question
You are the manager at a firm that sells its product in a competative market at a price of \$50. Your cost function is C=40+5Q^2. The profit maximizing output is ...
Q=5 (P=MC 50/10=10Q/10)
question
If the last unit of input increase total product, we know the marginal product is
Postitive
question
The absolute value of the slope of the Isoquant is the
-Marginal rate of the technical substitution
question
The combinations of inputs that produce a given level of outputs are depicted by
-Isoquants
question
Which of the following forms of payment is NOT an incentive plan?
Flat Salary, for a plant manager
question
The Leontief production function implies
L-Shaped isoquants
question
Suppose the long-run average cost curve is U-Shaped when LRAC is in increasing stage, there exists
Diseconomies of scale
question
For given input prices, isocosts farther from the origin are associated with:
Hiigher costs
question
Refer to the figure above, the firm should shut down in the short-run if the market price is
less than \$4.50 (Below AVC)
question
The industry elasticity of demand for telephone service is -2 while the elasticity of demand for a specific phone company is -5. What is the Rothchild index?
=0.4 (R=ET/EF= -2/-5=0.4)
question
Long-term contracts become longer:
When specialized investments becomes more important
question
The disadvantage of vertical integration is that:
Firms no longer specialize in what they do best
question
In the long-run, monopolistically competitive firms produce a level of output such that:
All of the statements are correct: (P>MC, P=ATC, ATC>minimum of average costs)
question
A negative side of a revenue-sharing plan is that it
Gives no incentive for workers to minimize costs
question
A Herfindal-Hirschman index of 10,000 suggests
A monopoly
question
Suppose each of the 50 states had only one gas station -- each of the same size. The four-firm concentration ratio would be :
=0.08 (4/50=0.08)
question
A Lerner index of 0 suggests
Perfect Competition
question

Price Value of the Firm

PVFirm= π[1+i/i-g]

question
Which of the following is true for perfect competition but not true for monopolistic competition and monopoly?
P = MC
question
You are the manager of a Mom and Pop store that can buy milk from a supplier at \$3.00 per gallon. If you believe the elasticity of demand for milk by customers at your store is −4, then your profit-maximizing price is:
\$4.00.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

## Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.