18.4   Chapter Figures     The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of a T-shirt is $5.   1) In the figure above, with international trade U.S. consumers buy ________ million T-shirts per year […]

  61) In monopolistic competition, there is inefficiency because price is greater than marginal cost. What brings about this inefficiency? A) high concentration, as indicated by the large concentration ratio B) product differentiation C) freedom of entry and exit D) marginal cost rises as more output is produced E) the fact there are many firms in the market   62) Even though monopolistic competition results […]

  23) The demand curve facing a single-price monopoly A) lies below the marginal revenue curve. B) lies above the marginal revenue curve. C) is the same as only the marginal revenue curve. D) is the same as only the marginal cost curve. E) is the same as both the marginal revenue curve and the marginal cost curve. 24) A single-price monopoly has a marginal […]

  21) For a firm in monopolistic competition, selling costs A) increase costs and reduce profits. B) always increase demand. C) can change the quantity produced and lower the average total cost. D) can lower total cost. E) have no effect on the quantity sold.   22) If advertising increases the numbers of firms in an industry, each firm’s demand A) increases. B) does not […]

    81) Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko’s, a firm that specializes in producing men’s clothing. If the market price of Marko’s polo shirts is $13, Marko’s will produce A) 1 shirt. B) 2 shirts. C) 3 shirts. D) 4 shirts.   82) Refer to Table 4-6. The table above lists the marginal cost […]

    81) Which of the following would cause both the equilibrium price and equilibrium quantity of barley (assume that barley is an inferior good) to increase? A) an increase in consumer income B) a drought that sharply reduces barley output C) a decrease in consumer income D) unusually good weather that results in a bumper crop of barley   82) Which of the following […]

    31) To maximize its profit, in the short run a perfectly competitive firm decides A) what price to charge for its product. B) what quantity of output to produce. C) whether to exit the market. D) whether to increase the size of its plant. E) how much advertising it should undertake.   32) A perfectly competitive firm can A) sell all of its […]

    65.Discount Dollar Store is considering the purchase of a new machine costing $220,000. This machine is estimated to generate an additional $88,000 per year in revenues. The machine will be depreciated using the straight-line method over its 4-year life. There is no expected salvage value at the end of its life. Expected annual net cash flows are $67,240 and expected annual net income […]

  11.Long-term orientation is best defined as: a.The degree of social inequality. b.The identity of an individual is not based on the identity of his or her collective group. c.Sex role differentiation. d.The extent to which people accept ambiguous situations. e.Emphasis on perseverance and savings. 12.Which of the following are true regarding cultures and strategic choices? a.Managers in high power distance countries have a greater […]

  51) Consider a firm that places coin-operated coffee machines in university buildings. On January 1, 2007 the firm has 1500 machines in operation, and on January 1, 2008 the firm has 2250 machines in operation. A possible explanation is that 1) there was an increase in productivity of coin-operated coffee machines that reduced the cost per cup of coffee produced; 2) an increase in […]