Eco500 final exam | Accounting homework help



.Suppose market demand and supply are given by Qd = 300 – 4P and QS = -50 + 3P. The equilibrium quantity is:






2. Other things held constant, the higher the price of a good

the lower the producer surplus.

the greater the producer surplus.

the higher the supply.

the lower the supply.


3. A firm has a marginal cost of $200 and charges a price of $500. The Lerner index for this firm is:
rev: 11_07_2013_QC_39365






4. You are the manager of a Mom and Pop store that can buy milk from a supplier at $3.00 per gallon. If you believe the elasticity of demand for milk by customers at your store is −4, then your profit-maximizing price is:






5.A monopoly producing a chip at a marginal cost of $6 per unit faces a demand elasticity of −2.5. Which price should it charge to optimize its profits?

$6 per unit

$8 per unit

$10 per unit

$12 per unit


6.The following provides information for a one-shot game.


What are secure strategies for firm A and firm B respectively?

(low price, low price)

(high price, low price)

(high price, high price)

Neither firm has a secure strategy.


7.The figure below presents information for a one-shot game.


7. Picture

What are dominant strategies for firm A and firm B respectively?

(low price, high price)

(high price, low price)

(high price, high price)

(low price, low price)


8.Which of the following is NOT an incentive scheme to ensure that workers do a good job?

Paying waitresses low wages, but allowing them to collect tips

Profit-sharing plans in large companies

Commission pay schedules for salesmen

Straight hourly wages for dock workers


9.The additional benefits that arise by using an additional unit of the managerial control variable is defined as the:

total benefit.

opportunity cost.

marginal benefit.

present value of benefits.


10.Suppose market demand and supply are given by Qd = 100 – 2P and QS = 5 + 3P. The equilibrium quantity is:






11.The purpose of randomized pricing is to reduce:

consumer price information only.

competitor price information only.

both customer and competitor information about price.

the firm’s pricing inflexibility.


12.Which of the following statements is NOT correct about monopoly?

A monopolist generally faces a downward-sloping demand curve.

Monopolists always make positive profits in the long run.

A monopoly may make negative profits in the short run.

There is no close substitute for a monopoly’s product.


13.In the absence of worker incentives:

everyone always gives maximum effort.

there is a natural tendency for workers to not give their maximum effort.

managers have little or no control.

None of the statements is correct.


14.In the short run, the marginal cost curve crosses the average total cost curve at:

a point just below the average fixed cost curve.

the minimum point of the average total cost curve.

the maximum point of the average total cost curve.

the point where the average total cost curve and average variable cost curve intersect.


15.An income elasticity less than zero tells us that the good is:

a normal good.

a Giffen good.

an inferior good.

an inelastic good.


16.Non-fed ground beef is an inferior good. In economic booms, grocery managers should:

increase their orders of non-fed ground beef.

reduce their orders of non-fed ground beef.

not change their orders of non-fed ground beef.

neither increase, reduce, nor maintain their current orders for non-fed ground beef.


17. Jaynet spends $40,000 per year on painting supplies and storage space.  She recently received two job offers from a famous marketing firm – one offer was for $115,000 per year, and the other was for $85,000.  However, she turned both jobs down to continue a painting career. If Jaynet sells 30 paintings per year at a price of $6,000 each:

a. What are her accounting profits?


b. What are her economic profits.


18. Use the following normal-form game to answer the questions below.



Player 2





Player 1


45, 45

110, 20


20, 110

60, 60

a. Identify the one-shot Nash equilibrium.

b. Suppose the players know this game will be repeated exactly three times. Can they achieve payoffs that are better than the one-shot Nash equilibrium?

c. Suppose this game is infinitely repeated and the interest rate is 5 percent. Can the players achieve payoffs that are better than the one-shot Nash equilibrium?

d. Suppose the players do not know exactly how many times this game will be repeated, but they do know that the probability the game will end after a given play is θ. If θ is sufficiently low, can players earn more than they could in the one-shot Nash equilibrium?



A risk-neutral consumer is deciding whether to purchase a homogeneous product from one of two firms. One firm produces an unreliable product and the other a reliable product. At the time of the sale, the consumer is unable to distinguish between the two firms’ products. From the consumer’s perspective, there is an equal chance that a given firm’s product is reliable or unreliable. The maximum amount this consumer will pay for an unreliable product is $0, while she will pay $210 for a reliable product.



Given this uncertainty, what is the most this consumer will pay to purchase one unit of this product?



How much will this consumer be willing to pay for the product if the firm offering the reliable product includes a warranty that will protect the consumer?


rev:  06_11_2013_QC_31

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Australia Assessments
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Great job.
Customer 462457, April 28th, 2022
Good work.
Customer 459817, June 16th, 2022
Construction Management
Customer 462679, March 14th, 2022
Customer 462623, April 15th, 2022
Finance/Acc related
Great job!
Customer 460073, August 14th, 2022
Public Health
Good work
Customer 452657, February 14th, 2020
ALL questions answered.
Customer 453625, April 7th, 2022
This revised version was far better than that of the first I received. Thank you so very much for the prompt service.
Customer 454007, March 16th, 2020
Criminal Justice
Thank You!
Customer 460569, November 23rd, 2021
Business and administrative studies
I had to make some updates but overall the paper was great. Will need to use this writer again for the next part.
Customer 453721, October 29th, 2022
Excellent work!!!
Customer 453939, June 25th, 2020
Leadership Studies
Writer was very patient and completed on time
Customer 452707, October 4th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat