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AGEC 217 Menzies tamu exam 1 & 2 concept questions and Answers
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AGEC 217 Menzies tamu exam 1 & 2 concept questions and Answers
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AGEC 217 Menzies tamu exam 1 & 2concept questions and Answers
The point where AVC equals MC is the _____________. - -Shutdown Point
- The OPE of Giffen Goods is always _______________. - -Positive
- It is possible for a firm to have a negative profit. - -True
- A ______________ will have high prices, lower quantities, and higher profits
than a perfectly competitive firm. - -Monopoly
- _______________ are considered price makers, thus they have a downward
sloping marginal revenue curve. - -Monopolies
- There is _______________ relationship between price and quantity
demanded. - -Negative
- If a producer of an elastic good wants to raise revenue, she should
__________ price. - -Lower
- The fewer substitutes a good has, the more _____________ it is. - -Inelastic
- The derivative of marginal revenue for a perfectly competitive firm is
always __________. - -Zero
- Lagrangian method is one way of solving _____________ optimization. - -
Constrained
- Why is the derivative of marginal revenue for a monopoly always negative?
- -Because MR is derived from Demand and demand is downward sloping.
- Why do normal goods have a positive income elasticity? - -As you have
more money, you buy more normal goods.
- Why do inferior goods have a negative income elasticity? - -As you have
more money, you buy less inferior goods.
- The derivative of marginal revenue for a monopoly is always ____________. -
-Negative.
- The point where MC is equal to ATC is the ____________. - -Breakeven point
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