Premium Essay

Ch. 14 Micro Test Bank

In: Other Topics

Submitted By leah63596
Words 34317
Pages 138
Chapter 14 Firms in Competitive Markets
MULTIPLE CHOICE 1. A firm has market power if it can
a. maximize profits.
b. minimize costs.
c. influence the market price of the good it sells.
d. hire as many workers as it needs at the prevailing wage rate.
ANS: C PTS: 1 DIF: 1 REF: 14-0
NAT: Analytic LOC: Perfect competition TOP: Market power
MSC: Definitional 2. A book store that has market power can
a. influence the market price for the books it sells.
b. minimize costs more efficiently than its competitors.
c. reduce its advertising budget more so than its competitors.
d. ignore profit-maximizing strategies when setting the price for its books.
ANS: A PTS: 1 DIF: 1 REF: 14-0
NAT: Analytic LOC: Perfect competition TOP: Market power
MSC: Applicative 3. The analysis of competitive firms sheds light on the decisions that lie behind the
a. demand curve.
b. supply curve.
c. way firms make pricing decisions in the not-for-profit sector of the economy.
d. way financial markets set interest rates.
ANS: B PTS: 1 DIF: 1 REF: 14-0
NAT: Analytic LOC: Perfect competition TOP: Competitive markets
MSC: Interpretive 4. For any competitive market, the supply curve is closely related to the
a. preferences of consumers who purchase products in that market.
b. income tax rates of consumers in that market.
c. firms’ costs of production in that market.
d. interest rates on government bonds.
ANS: C PTS: 1 DIF: 1 REF: 14-0
NAT: Analytic LOC: Perfect competition TOP: Competitive markets
MSC: Interpretive 5. Suppose a firm in each of the two markets listed below were to increase its price by 20 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not?
a. corn and soybeans
b. gasoline and restaurants
c. water and cable television
d. spiral notebooks...

Similar Documents

Premium Essay

Micro Economic

...ECO111 Course Title: MICRO ECONOMICS L: 4 T: 1 P: 0 Cr: 5 Course Planner :- 13612 :: Chander Shekhar Dogra TextBook 1. Geetika, Ghosh Piyali, Purba Roy Choudhury, Managerial Economics, Tata McGraw Hill, New Delhi, 2008 Other Specific Books 2. 3. 4. Other Readings Ahuja, H.L,”Modern Microeconomics Theory and Applications,” Sultan Chand, 2008 Misra and Puri, Economic Environment of Business, 4th Edition, 2007. Samuelson, P.A. and W.D. Nordhaus (1998), Economics, Tata McGraw Hill, New Delhi 2008 Dominick Salvatore, Managerial Economics, Oxford University Press, Sixth Edition Sr. No. Jouranls atricles as compulsary readings (specific articles, Complete reference) 5 6 7 8 Competition and the cartel crusade, Alan Moran. Review - Institute of Public Affairs. Melbourne:Jan 2008. Vol. 59, Iss. 4, p. 57-59 Supply and Demand Irena Asmundson. Finance & Development. Washington:Jun 2010. Vol. 47, Iss. 2, p. 48-49 Impact of Anti dumping measures on Indian Industry by Swati Jain, Sudhir K. Jain, Decision, Vol 35, No 1, January-June, 2008, p 3. The New Global Opportunity by Michael Elliot, Fortune, July 5, 2010, Vol 162, No 1, Relevant Websites Sr. No....

Words: 2227 - Pages: 9

Premium Essay

Economics

...In the last part of the unit, topics include the determinants and theories of economic growth, productivity and technology, the dynamics of the business cycle, counter-cyclical policy and the relationship between micro and macro policy in the context of recent Australian experience. Pre-requisite units ECON1002 Assumed knowledge or skills It will be assumed that students know (a) how to read and draw graphs (b) how to use algebra to solve simple equations and (c) what a derivative is and how to differentiate simple functions. Students are also assumed to have the...

Words: 3541 - Pages: 15

Free Essay

Handbook

...Bachelor of Arts in Business Economics STUDENT’S HANDBOOK 2011/2012 Lazarski University Warsaw, June 2011 1 Lazarski School of Commerce and Law Student’s Handbook- Bachelor of Arts in Business Economics Content Page 4 6 8 13 15 15 15 17 17 18 19 21 23 24 26 28 30 32 34 35 37 39 41 43 44 46 48 49 50 51 53 54 55 57 58 59 60 62 63 63 64 66 67 69 72 74 75 76 77 79 80 82 The Programme The Degree Assessment Quality Assurance Admission Procedures Erasmus Study in BABE Programme Administrative Issues Course Descriptors Mathematics Introductory Microeconomics Introduction to Sociology Current Issues of the European and Global Economy Academic Writing Introduction into Business Introductory Macroeconomics Introduction into Economic Analysis Economics of Integration Information Technology Intermediate Microeconomics Issues in Macroeconomic Policy Mathematical Economics Statistics Regional Economics Introduction to Strategic Management Banking and Finance International Business Law Research Proseminar Accounting Managerial Economics International Economics Intermediate Macroeconomics Econometrics Research Methods Social Policy Game Theory Public Finance Investment Analysis BA Seminar Electives Financial Accounting Monetary Theory and Policy - The Impact of Global Crisis Principles of Marketing The World Economy – Retrospective View The Small and Medium-Sized Enterprises (SME) Sector Economics of Telecommunication Demography and Economics of Contemporary European Migration......

Words: 47436 - Pages: 190

Free Essay

The Implication of Ppp on Ptm

...3 The Regulatory System in the United Kingdom This chapter examines the regulatory system currently in place in the United Kingdom. It provides an overview of the structure and objectives of regulation, the role of the regulator and the techniques that are employed in regulating firms and individuals who engage in investment business. 3.1 Background: the financial crisis and regulatory reform 3.1.1 Responding to the financial crisis In the UK, as elsewhere, the onset of the financial crisis exposed deficiencies in financial regulation and led to calls for regulatory reform. The Treasury Select Committee1 led the way, with its hearings into the collapse of Northern Rock exposing serious deficiencies in supervision and risk management.2 In October 2008, the Chancellor of the Exchequer asked Lord Turner, the newly appointed chairman of the FSA, to review the causes of the crisis and to make recommendations on the changes in regulation and supervisory approach needed to create a more robust banking system for the future. The Turner Review3, published in March 2009, made a 1 The Treasury Select Committee is a Parliamentary (House of Commons) committee that scrutinises the activity of the regulatory authorities in the UK. 2 See House of Commons Treasury Committee, The Run on the Rock HC 56-1 (Fifth Report of Session 2007-08). 3 FSA, ‘The Turner Review, A regulatory response to the global banking crisis’ (March 2009)......

Words: 25821 - Pages: 104

Premium Essay

Ongc Project

...Gujarat Technological University Syllabus for New MBA Program effective from Academic Year 2011-12 (Also applicable to 2nd Year Students of 2010-12 Batch MBA Program) COMPULSORY COURSES MBA-II Semester-IV Sub Name: - Comprehensive Project Report – Industry Defined Problem (CP-IDP) Sub Code: - 2830004 In addition to Major Specializations, there will be over sixty Sectorial / Industry Areas for Practical studies in which theoretical papers / books are not to be taught in regular classroom sessions, but the teachers and students are free to use any available books, publications and online material to understand and guide the students for various sectors. Ideally, a teacher should study and specialize in at least TWO Sectors, so four teachers can guide 60 students in a class. (Reference: Appendix 1: List of Sectorial Areas for Comprehensive Project study given in Sem III Syllabus). This report is similar to the Grand Project, which was the part of earlier syllabus. The Comprehensive Project Report is based on the research methodology and students have to prepare the research report by using appropriate scientific statistical research tools for preparation of the CP in consultation with the faculty guide. (Please also refer the Guidelines for CP in MBA Semester III, as the same Project Title continues in Semester IV). A student has to opt for any ONE of the Sectorial Areas and study it thoroughly. The students may undertake the CP based on the selection of an Industry Defined......

Words: 19599 - Pages: 79

Free Essay

Nvidia780I

...User Guide EVGA nForce 780i SLI Motherboard 780i 3-Way SLI Motherboard EVGA ii nForce 780i SLI Motherboard Table of Contents Before You Begin… ..................................................................................................... ix Parts NOT in the Kit .................................................................................................ix Intentions of the Kit ...................................................................................................x EVGA nForce 780i Motherboard..................................................................................1 Motherboard Specifications...................................................................................... 1 Unpacking and Parts Descriptions...............................................................................4 Unpacking ................................................................................................................ 4 Equipment ................................................................................................................ 4 EVGA nForce 780i SLI Motherboard ....................................................................... 5 Hardware Installation ....................................................................................................9 Safety Instructions.................................................................................................... 9 Preparing the Motherboard......

Words: 12933 - Pages: 52

Premium Essay

Business Administration

...Semester-wise Breakup for BBA…...............14 3. Bachelor of Business Studies (BBS)......................15 4. MBA Programme....................................................16 a. Structure of MBA Programme........................17 b. Semester-wise Breakup for MBA...................19 5. MS in Management Sciences................................20 a. Structure of MS Programme...........................20 b. Eligibility for Non-business Degree Holders...21 6. Roadmap for Business Education…………............24 7. BBA Course outlines...............................................25 a. Compulsory Courses for BBA...…….…..........25 b. Foundation Core Courses...........…....…....... 41 c. Major Core Courses........................................59 d. Major Elective Courses...................................75 e. Management Specialisation Courses..............89 f. Marketing Specialisation...............................105 g. Finance Specialisation..................................105 8. BBS Course outlines..............................................116 a. Core Courses................................................116 b. Elective...

Words: 58162 - Pages: 233

Free Essay

Business-Plan-for-Microfinance

...STRATEGIC PLAN 2009 - 2013 BERENDINA MICROFINANCE INSTITUTE TABLE OF CONTENTS ABBREVIATION: ................................................................................................................................................. 4 1. CURRENT SITUATION ............................................................................................................................... 5 1.1 1.2 1.3 1.4 2. COMPANY INFORMATION ........................................................................................................................... 5 MICROFINANCE METHODOLOGY ADOPTED BY BMI .................................................................................... 6 VISION AND MISSION ................................................................................................................................. 7 PRODUCTS AND SERVICES .......................................................................................................................... 7 STRATEGIC PLANNING METHODOLOGY .............................................................................................. 7 2.1 SWOT A NALYSIS ...................................................................................................................................... 8 3. STRATEGIC GOAL & OBJECTIVES ........................................................................................................ 10 3.1 3.2 STRATEGIC GOAL FOR 2009-2013......

Words: 10412 - Pages: 42

Free Essay

Art of Thinking Clearly by Rolf Dobelli

...: Swimmer’s Body Illusion 3 WHY YOU SEE SHAPES IN THE CLOUDS: Clustering Illusion 4 IF 50 MILLION PEOPLE SAY SOMETHING FOOLISH, IT IS STILL FOOLISH: Social Proof 5 WHY YOU SHOULD FORGET THE PAST: Sunk Cost Fallacy 6 DON’T ACCEPT FREE DRINKS: Reciprocity 7 BEWARE THE ‘SPECIAL CASE’: Confirmation Bias (Part 1) 8 MURDER YOUR DARLINGS: Confirmation Bias (Part 2) 9 DON’T BOW TO AUTHORITY: Authority Bias 10 LEAVE YOUR SUPERMODEL FRIENDS AT HOME: Contrast Effect 11 WHY WE PREFER A WRONG MAP TO NO MAP AT ALL: Availability Bias 12 WHY ‘NO PAIN, NO GAIN’ SHOULD SET ALARM BELLS RINGING: The It’llGet-Worse-Before-It-Gets-Better Fallacy 13 EVEN TRUE STORIES ARE FAIRYTALES: Story Bias 14 WHY YOU SHOULD KEEP A DIARY: Hindsight Bias 15 WHY YOU SYSTEMATICALLY OVERESTIMATE YOUR KNOWLEDGE AND ABILITIES: Overconfidence Effect 16 DON’T TAKE NEWS ANCHORS SERIOUSLY: Chauffeur Knowledge 17 YOU CONTROL LESS THAN YOU THINK: Illusion of Control 18 NEVER PAY YOUR LAWYER BY THE HOUR: Incentive Super-Response Tendency 19 THE DUBIOUS EFFICACY OF DOCTORS, CONSULTANTS AND PSYCHOTHERAPISTS: Regression to Mean 20 NEVER JUDGE A DECISION BY ITS OUTCOME: Outcome Bias 21 LESS IS MORE: The Paradox of Choice 22 YOU LIKE ME, YOU REALLY REALLY LIKE ME: Liking Bias 23 DON’T CLING TO THINGS: Endowment Effect 24 THE INEVITABILITY OF UNLIKELY Events: Coincidence 25 THE CALAMITY OF CONFORMITY: Groupthink 26 WHY YOU’LL SOON BE PLAYING MEGATRILLIONS: Neglect of Probability 27 WHY THE LAST COOKIE IN THE JAR MAKES YOUR......

Words: 75018 - Pages: 301

Premium Essay

Report

...To work in a bank, to acquaint with its working mechanism was always a point of interest for me and God gave me a golden opportunity to complete my internship at UBL, one of the leading bank in Pakistan and well known in world due to its appearance in the international markets. I had a general idea about the banking, but once I practically started the internship in banking field I observed much about banking, I realized the importance and significance of commercial banking for the development of economy. To adjust myself in such a large commercial organization was not an easy task, but by the grace of Almighty Allah aid my internship in a befitting manner and I learned a lo about the overall banking arena. This expanded my vision about the banking sector, which in turn enabled me to make an appraisal of the economic situation of our country. This report is a thorough essence of my rigorous studies which I undergone through in a period of two months in a commercial bank. I have exclusively studied and observed the operations/ functioning of the bank and tried my best to abreast myself with all the dimensions of the banks. The purpose of this report is to evaluate the performance of UBL in diversified avenues and give concrete recommendation for further improvement. Although the bank is functioning satisfactory, but the path to ultimate success is still full of threats and hurdles....

Words: 16308 - Pages: 66

Premium Essay

Stategic Management

...Universiti Kebangsaan Malaysia Graduate School of Business COURSE NAME: STRATEGY AND COMPETITIVENSS (SEMESTER 2014/2015) COURSE CODE: ZCZB6523 (SET 5) CREDIT: 3 HOURS TRIMESTER: 7th FEB 2015 The course starts on 7th February 2015. The first class will be a full lecture session. The subsequent classes will require groups (of two students) to make their respective presentations on their selected company. Most classes are on Saturdays from 8.30 -11.30 am 1.0 COURSE OBJECTIVES and LEARNING OUCOMES: This course focuses on some of the important elements of strategic management. It will concentrate on strategy development and competitive advantage. It is consciously designed to highlight the significant emerging trends in strategic management. The course provides students with a practical approach to the formulation and implementation of corporate, business, and functional strategies. The course is also meant to give graduate students the skill to derive strategies rationally for the organizations that they are currently working for or have chosen for their analysis. There are no strategic decisions that are perfect under the current turbulent business environment. Therefore, a rational approach to strategic decision-making is deemed most appropriate. However, the strategy developed may not survive in its original form upon execution. Accordingly, these strategies have to be adjusted to meet the current challenges. Emergent strategies that were......

Words: 4764 - Pages: 20

Premium Essay

Bis Paper 65 Threat of Fiscal Dominance?

...The views expressed are those of the authors and do not necessarily reflect the views of the BIS or the central banks represented at the meeting. Individual papers (or excerpts thereof) may be reproduced or translated with the authorisation of the authors concerned. This publication is available on the BIS website (www.bis.org). © Bank for International Settlements 2012. All rights reserved. Brief excerpts may be reproduced or translated provided the source is stated. ISSN 1609-0381 (print) ISBN 92-9131-135-9 (print) ISSN 1682 7651 (online) ISBN 92-9197-135-9 (online) Preface The massive expansion of central bank balance sheets to contain the worst financial crisis in living memory raises questions about the theory and practice of monetary policy. The persistence in many advanced countries of large fiscal deficits and the prospect of high public debt/GDP ratios for many years is likely, at some point, to create policy dilemmas not only for central banks but also for public debt managers. Some countries have already had to cope with higher sovereign risk. Worries about both “fiscal dominance” and “financial repression” have certainly gained ground. Whatever view is taken of this, the boundary between monetary policy and government debt management has become increasingly blurred. Policy interactions have changed in ways that are difficult to understand. The current delineation of policy mandates may need to be reassessed. The...

Words: 122666 - Pages: 491

Free Essay

Kenya Report

...An Evaluation of Micro-Finance Programmes in Kenya as Supported through the Dutch Co-Financing Programme With a focus on KWFT Otto Hospes Muli Musinga Milcah Ong’ayo November 2002 Study commissioned by: Steering Committee for the Evaluation of the Netherlands’ Co-financing Programme 3 Contents List of contributors List of abbreviations Acknowledgements 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 2 Introduction Background and objectives Legitimization and overall objective of Dutch CFAs to support micro-finance programmes Partners of Dutch CFAs operating in the micro-finance market of Kenya Central questions Organization and methodology Process implementation and limitations of the study Structure of the report A brief description of micro-finance in Kenya and agencies as supported by Dutch CFAs Micro-finance in Kenya 2.1.1 The emergence of micro-finance as an industry 2.1.2 Types of micro-finance agencies in Kenya 2.1.3 Service delivery approaches 2.1.3.1 Savings services 2.1.3.2 Loan products 2.1.4 Outreach 2.1.4.1 Banks 2.1.4.2 NGO-MFAs 2.1.4.3 Savings and Credit Co-operatives (SACCOs) 2.1.4.4 ROSCAs and ASCRAs A profile of micro-finance agencies and schemes as supported by Dutch CFAs 2.2.1 General profile 2.2.2 Specific profiles 2.2.2.1 K-REP Development Agency (KDA) 2.2.2.2 Kenya Women Finance Trust (KWFT) 2.2.2.3 Jitegemea Credit Scheme (JCS) 2.2.2.4 PRIDE Africa – Sunlink Some conclusions 7 9 11 13 13 15 16 17 17 18 19 21 21 21 23 25 26 28 28 31 33 35 35 36......

Words: 76935 - Pages: 308

Premium Essay

Corruption in Bangladesh

...Introduction: Corruption means committing crime and mischief to the country. It causes great harm to the countrymen. None escape from the harm of corruption. It is a social malady. It spreads its greedy clutches all over the country; each and every government sector of the country is affected by corruption. Government officials, clerks, secretaries and even ordinary peons, security officers and others are engaged in corruption. They take bribe from common people for giving any service. Our country, Bangladesh, has topped the list of corrupt countries five times. There is none to raise voice against the galloping corruption! Even the organizations that collects data about corruption – are themselves corrupted in a very secret way! However there are many reasons behind this corruption. The greed for power, pelf, wealth and money is the root cause of corruption. Avarice, dishonesty, nepotism and favoritism are also responsible for corruption. Corruption Statement of Problem: This paper analysis’s the corruption in Bangladesh. I will discuss the current situation of corruption and its effect. We know that corruption is the main obstruction for development in Bangladesh. This topic is very much related to our social life for that reasons I will try to fulfill the purpose of this research. Objectives of Research: It is very important to identify the objectives of any research .I will describe all the objectives of this research on corruption in Bangladesh. The......

Words: 8978 - Pages: 36

Premium Essay

Equity Premium: Historical, Expected, Required and Implied

...Pablo Fernandez IESE Business School, University of Navarra Ch 12 Equity Premium: Historical, Expected, Required and Implied Equity Premium: Historical, Expected, Required and Implied Pablo Fernandez Professor of Finance. IESE Business School, University of Navarra Camino del Cerro del Aguila 3. 28023 Madrid, Spain e-mail: fernandezpa@iese.edu January 29, 2013 The equity premium designates four different concepts: Historical Equity Premium (HEP); Expected Equity Premium (EEP); Required Equity Premium (REP); and Implied Equity Premium (IEP). We highlight the confusing message in the literature regarding the equity premium and its evolution. The confusion arises from not distinguishing among the four concepts and from not recognizing that although the HEP is equal for all investors, the REP, the EEP and the IEP differ for different investors. A unique IEP requires assuming homogeneous expectations for the expected growth (g), but we show that there are several pairs (IEP, g) that satisfy current prices. We claim that different investors have different REPs and that it is impossible to determine the REP for the market as a whole, because it does not exist. We also investigate the relationship between (IEP – g) and the risk free rate. There is a kind of schizophrenic approach to valuation: while all authors admit different expectations of equity cash flows, most authors look for a unique discount rate....

Words: 18388 - Pages: 74