- •Exam in microeconomics (January, 2008)
- •Infinitely elastic
- •Infinitely elastic
- •Unit elastic
- •Producers are identical
- •Constant
- •Some firms can earn economic profits
- •Can have a positive slope
- •Crude milk producers
- •Elastic
- •In equilibrium he produces more then a non-discriminating monopolist
- •An ability of the monopolist to discriminate among customers
- •None of the above: a), b) and c) are all true for a natural monopoly.
- •Introduce a two-part tariff in order to cover monopoly’s average costs
- •II only
- •The firm can not influence the wage rate
- •More than one answer is correct
- •None of the above
- •Deficit of labor in the market
- •Additional dollar spent on labor will increase output by the same amount as additional dollar spent on capital
- •Both statements are wrong.
- •More than one answer is correct.
- •More than one answer is correct.
- •None of the above
- •II only
- •None of the above.
- •Social; cost.
- •None of the above.
- •Its marginal private benefit is higher than its marginal social benefit.
- •None of the above
- •Subsidize the producers.
- •Peter will buy 3 units of the public good, John won’t finance it.
- •None of the above.
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I and II only
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I and III only
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II only
-
III only
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I, II and III
26) If a firm is a sole employer in a small town, but sells its output in a competitive market then the employment optimization condition can be written as:
A) MPL = w/P
B) P = MCL/w
C) MPL = MCL
D) P = MCL/MPL
E) None of the above
27) A firm finds that its marginal cost of labor curve is horizontal. This means that:
-
Additional unit of labor hired will not increase costs
-
Marginal cost of production is zero
-
The firm can not influence the wage rate
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Firm should not hire additional workers
-
More than one answer is correct
28) What is TRUE about the preferences of individual depicted on the figure above?
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Leisure can not be inferior
-
Consumption can be inferior
-
I only
-
II only
-
I and II
-
None of the above
-
Not enough information to answer the question
29) Setting minimum wage may result in all of the following except:
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Increase in the number of people employed
-
Decrease in the number of people employed
-
Increase in the wage rate
-
Decrease in the total wage paid to all workers
-
Deficit of labor in the market
30) A firm uses two inputs (labor and capital) to produce its output. If it chooses both inputs optimally:
-
Wage rate must be equal to the interest rate
-
Average products of both factors must be equal to the marginal products of corresponding factors
-
Marginal products of these factors are equal
-
Increase in output resulted from hiring additional unit of labor is equal to the increase in output following increase in capital by 1 unit.
-
Additional dollar spent on labor will increase output by the same amount as additional dollar spent on capital
31)Vasya Pupkin is studying microeconomics. He makes two statements:
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A competitive industry’s demand for capital curve can be obtained as a horizontal sum of individual firms’ marginal value product of capital (MVPK) curves.
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For a large economy, the overnight supply of capital is perfectly elastic.
-
Only statement I is correct.
-
Only statement II is correct.
-
Both statements are correct.
-
Both statements are wrong.
32)Marginal value product of capital…
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…is equal to the change in total revenue from selling the product of another unit of capital, other inputs held fixed.
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…is equal to the revenue obtained from selling the product of another unit of capital, other inputs held fixed.
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…is equal to the price of another unit of output.
-
…is equal to the marginal revenue from producing another unit of output.
-
More than one answer is correct.
33)Marginal revenue product of capital…
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…is always smaller than the marginal value product of capital.
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…is declining, if the law of diminishing marginal returns holds.
-
…is equal to the output price times the marginal product of capital.
-
More than one answer is correct.
-
None of the above
Comment: In this question full mark was given for answers B and D, because the concept of MRPK (and MRPL) was almost always applied to situations with market power in the product market, in which case the answer A is also correct.
34)For a profit-maximizing quantity of capital, the marginal revenue product of capital is equal to the marginal cost of capital, if a firm…
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Is a monopoly with no market power in the capital market.
-
Is a perfectly competitive firm with market power in the capital market.
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Has market power in both output and capital markets.
-
Has no market power in either output or capital market.
-
More than one answer is correct.
35)Which of the following is not a flow variable?
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Foreign investment in Russian automobile industry in 2007.
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The size of Russian foreign debt.
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Interest payments on Vasya Pupkin’s mortgage in 2006.