Ask Question, Ask an Expert


Ask Business Economics Expert

Multiple choice problems on utility maximization and market structure

1)  Joan is deciding where to spend her spring break.  If she goes to Cancun, Mexico, the trip will give her 9,000 utils of satisfaction and will cost her $300.  If, instead, she travels to Florida, the trip will given her 5,000 utils of pleasure and will cost her only $200.  Joan will most likely do best:

a)  going to Mexico because her total cost will be lowest.

b)  going to Florida because her total cost will be lowest.

c)  going to Mexico because her pleasure per dollar will be greatest.

d)  going to Florida because her pleasure per dollar will be greatest.

2)  In choosing between two products, a rational consumer will choose which product which gives her:

a)  the greatest total utility per dollar.

b)  the least marginal utility per dollar.

c)  the least total utility per dollar.

d)  the greatest marginal utility per dollar.

3)  In the long run:

a)  inputs can no longer be increased.

b)  output is at its maximum attainable level.

c)  the company can vary all of its inputs.

d)  no diminishing returns are experienced.

4)  If fixed costs are $460 and variable costs are $980 at output level 12, average total costs would be:

a)  $80.

b)  $100.

c)  $120.

d)  $200.

5)  Which of the subsequent provides the best evidence which economies of scale exist?

a)  The per-unit costs on Excel Publishing Organization's manuals fell subsequent a large order from the government.

b) Alpha-Beta Inc. raised its price 10% subsequent a 5% increase in production costs.

c)  Widget Manufacturing doubled its production by opening a new plant which was identical to its old plant.

d)  The XYZ Co. increased production 25% subsequent a 30% increase in all inputs.

6)  Which of the subsequent is not an explanation for diseconomies of scale?

a)  Less team spirit.

b)  Increased specialization.

c)  Lower output per unit of input.

d)  Increased monitoring costs.

7)  The demand curve facing an individual capable to producer in a purely competitive market is:

a)  Down sloping to the right.

b)  Up sloping to the right.

c)  Perfectly inelastic

d)  Perfectly elastic 

8)  Refer to the subsequent:


Total Cost

Total Revenue













The profit-maximizing condition takes place at:

a)  1 unit of output.

b)  2 units of output.

c)  3 units of output.

d)  4 units of output.












































A profit-maximizing monopolist would capable to produce:

a)  1

b)  3

c)  4

d)  5

10)  The demand curve for a monopolist is:

a)  perfectly elastic

b)  not relevant since the monopolist has control over price

c)  the same as the market demand curve

d)  perfectly inelastic

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916982

Have any Question? 

Related Questions in Business Economics

Question 1 for the following situations calculate

Question 1 . For the following situations, calculate elasticity of demand and comment on the answer.                             When the price of commodity X was Rs. 12/-, 40 units it were demanded. When the price decre ...

Free trade and restricted trade - benefits and cost1-2

Free Trade and Restricted Trade - Benefits and Cost 1-2 paragraphs APA format/ no plagarism Using your own words, define both free and restricted trade. What do you feel are the benefits and the cost to having free trade ...

Allocation and allotments please respond to the following1

"Allocation and Allotments" Please respond to the following: 1. From the first e-Activity, examine and evaluate the disparity of Georgia budget allocation for education and property tax to the various localities. Based o ...

In the united states as in most countries we value the

In the United States, as in most countries, we value the benefits of a free and competitive market. This suggests an interesting question: what if there were to be no Antitrust laws or other regulations on business activ ...

Cite the sources used to answer this question provide the

Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. 1) Class, is it possible for a business to show an accounting profit, but actually earn ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

Assignmentpart idirections please write a paper that is at

Assignment PART I Directions: Please write a paper that is at least two to three pages in length in which you address the questions below. Write your paper in APA format with at least one cited scholarly reference. Revie ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Assignmentarticle reportplease select a marketing topic you

Assignment Article Report Please select a marketing topic you learned and then search in the Wall Street Journal (either online or hardcopy *) and select an article about that topic within the last 12 months. To do this, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro