Question

Student Name: Amita Patel
Student Email: amipatelbe@gmail.com

Site Title: Economics UOP custom CW
Book's Title: UOP-custom course for Economics
Book's Author: Case
Location on Site: Chapter 3 > Lecture Exam Questions

100% Correct of 8 Scored items:
8 correct: 100%
0 incorrect: 0%

Submitted on April 10, 2010 at 11:08 AM (EDT)

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Question 1

The demand curve facing each wool producer is ________ starting at $3.00 per pound.

Correct: horizontal.

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Question 2

If a firm in a perfectly competitive industry raises price above market price,

Correct: its sales will drop to zero.

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Question 3

The fast food industry is not considered perfectly competitive because:

Correct: the firm's products are differentiated.

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Question 4

You are certain that a normal rate of profit is 18% for the fast-food industry. What is your estimate of a normal rate of profit in the computer software industry, which is considered to be much riskier than the computer industry?

Correct: above 18%

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Question 5

Situation 1:
You are the owner an only employee of a company that writes computer software that is used by doctors to bill patients. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you quit a job at another computer software firm that paid $40,000 a year.
A yearly normal profit for your computer software firm would be

Correct: $40,000.

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Question 6

The marginal product of the second worker is.

Correct: 20...