Animals Multiple Choice Questions and Answers

21. In order to maximize profits, a monopoly company will produce that quantity at which the:

1. marginal revenue equals average total cost
2. price equals marginal revenue
3. marginal revenue equals marginal cost
4. total revenue equals total cost

22. Compared to the case of perfect competition, a monopolist is more likely to:

1. charge a higher price
2. produce a lower quantity of the product
3. make a greater amount of economic profit
4. all of the above

23. Which of the following best defines price discrimination?

1. charging different prices on the basis of race
2. charging different prices for goods with different costs of production
3. charging different prices based on cost-of-service differences
4. selling a certain product of given quality and cost per unit at different prices to different buyers

24. In order to practice price discrimination, which of the following is needed?

1. some degree of monopoly power
2. an ability to separate the market
3. an ability to prevent reselling
4. all of the above

25. In price discrimination, which section of the market is charged the higher price?

1. the section with the richest people
2. the section with the oldest people
3. the section with the most inelastic demand
4. the section with the most elastic demand

26. The demand for labor is the same as the

1. marginal revenue product
2. marginal physical product
3. marginal cost
4. wage

27. The demand for labor slopes down and to the right because of

1. the law of demand
2. the iron law of wages
3. the law of diminishing marginal returns
4. economies of scale

28. The demand for labor will be more elastic if:

1. there are few substitutes for labor
2. there is a short time under consideration
3. labor is a large percent of the total cost of production
4. the demand for the product is relatively inelastic

29. Skills that can be transferred to other employers are called:

1. general skills
2. specific skills
3. non-pecuniary skills
4. all of the above

30. Which skills are most likely to be paid for by the employer?

1. General skills
2. Specific skills
3. Educational skills