Ecn 601 - Study guides, Class notes & Summaries

ECN 601 Midterm Review (Complete Exam 1 in MindTap. This exam will cover material from Topics 1-3. Exam 1 will consist of 40 multiple-choice questions and will last 80 minutes. This exam must be completed by the end of the topic. All questions must be answered to earn full credit. If you choose more than one answer for a question, it will be counted as a wrong answer)

1. Question:Theopportunity cost ofanactionis: 2. Question:Priceceilingscause: 3. Question:Acompanyinvested$400,000inatechnologythatreducedtheoverallcostsof production by reducing their cost per unit from $2 to $1.85. Later, amanagerhasanopportunitytooutsourceproductiontoanothercompanyatacostperunitof$1.75.Ifyouare themanager,you: 4. Question:Anincreaseinthepriceofacomplementshiftsthedemandcurvetothe: 5. Question:Afirmsells1,000unitsperweek.Itcharges$15perunit,theaveragevariablecostsare$10,an...

1. Question:Forjointlyownedsubstituteproducts,cannibalizationleads toMR MC. 2. Question:Use the table provided to answer the following question. If the groups are of equal size andthe firm can onlysetoneprice,howshould the firmpricethehigh-end wok? 3. Question:TheoptimalstrategyinaVickeryauctionisto: 4. Question:Whichofthefollowingisascreenagainstadverseselection? 5. Question:The general rule to increase profits when two close complementary brands are jointly ownedis: 6. Question:Indirectpr...

1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15% success mak...

1. Question:Theopportunity cost ofanactionis: 2. Question:Priceceilingscause: 3. Question:Acompanyinvested$400,000inatechnologythatreducedtheoverallcostsof production by reducing their cost per unit from $2 to $1.85. Later, amanagerhasanopportunitytooutsourceproductiontoanothercompanyatacostperunitof$1.75.Ifyouare themanager,you: 4. Question:Anincreaseinthepriceofacomplementshiftsthedemandcurvetothe: 5. Question:Afirmsells1,000unitsperweek.Itcharges$15perunit,theaveragevariablecostsare$10,an...

1. Consider the following sequential game in which player 1 selects first between A, B, C, and D,andplayer2selects secondeitherXorY.Whichstrategy doesplayer1selectinequilibrium? 2. fr1me05h.Ch15-2.01: What is the Nash equilibrium of the following game? 3. fr1me05h.Ch15-3.01: Which of the following is true of a prisoner’s dilemma? 4. Consider the following game representing hockey team’s choices to wear a helmet or not prior to the NHL mandating the wearing of helmets. 5. What is the Nash...

1. Question:Forjointlyownedsubstituteproducts,cannibalizationleads toMR MC. 2. Question:Use the table provided to answer the following question. If the groups are of equal size andthe firm can onlysetoneprice,howshould the firmpricethehigh-end wok? 3. Question:TheoptimalstrategyinaVickeryauctionisto: 4. Question:Whichofthefollowingisascreenagainstadverseselection? 5. Question:The general rule to increase profits when two close complementary brands are jointly ownedis: 6. Question:Indirectpr...

CHAPTER 17 1. Question: The expected value of an uncertain outcome is: 2. Question: If your uncle offers you a deal with an expected value much greater than your cost to take part: 3. Question: You have to choose between risky options A and B. You calculate the expected value of A is greater than the expected value of B by am3%. Your likely course of action is: 4. Question: You have to decide whether to sell widgets for $5 or $6 when your marginal cost is $3. In the past, you have had 15%...

1. Question:TheoptimalstrategyinaVickeryauctionisto: 2. Question:Tomwantstoavoidanyaccidentsontheworkfloorofhisfactory.Ifanaccidentdoesoccur,itwouldcosthim $500,000 in damages. Installing safety equipment would decrease the probability of an accidentoccurring from 20% to 10%. However, the equipment costs $20,000 to install. What is his expected lossafterinstalling thesafetyequipment? 3. Question:Whichofthefollowingisaviolationofantitrustlaws? 4. Question:Whatisitcalledwheneachadditionalworker...

1. Question:Indirectpricediscrimination differsfromdirectprice discriminationbecause: 2. Question:What is it called when each additional worker hired contributessuccessively smalleramountsofoutput? 3. Question:Jim has a better chance of having his offer accepted, since the seller doesnothaveanyoutsideoffers. 4. Question:For a production function with a diminishing, but positive, marginal productoflabor: 5. Question:Nashequilibriumis: 6. Question:Moralhazardimpliesthat: 7. An HVAC company i...