微观经济理论测试题库：tb09

1、Chapter 9/Profit Maximization Chapter 9Profit Maximization97.A firms marginal revenue is defined asa.the ratio of total revenue to total quantity produced.b.the additional output produced by lowering price.c.the additional revenue received due to technical innovation.*d.the additional revenue receiv

2、ed when selling one more unit of output.98.In order to maximize profits, a firm should produce at the output level for whicha.average cost is minimized.*b.marginal revenue equals marginal cost.c.marginal cost is minimized.d.price minus average cost is as large as possible.99.If demand facing the fir

3、m is price-inelastic, marginal revenue will bea. positive.b. zero.*c. negative.d. constant.100.If a firm wished to maximize total revenues it should produce wherea. marginal cost is zero.*b. marginal revenue is zero.c. marginal revenue is equal to marginal cost.d. marginal revenue is equal to price.

4、101.If a firm is a price taker, its marginal revenue is*a.equal to market price.b.less than market price.c.greater than market price.d.a multiple of market price that may be either greater than or less than one.102.If a firms marginal revenue is below its marginal cost, an increase in production wil

5、l usuallya.increase profits.b.leave profits unchanged.*c.decrease profits.d.increase marginal revenue.103.If the demand faced by a firm is inelastic, selling one more unit of output willa.increase revenues.*b.decrease revenues.c.keep revenues constant.d.increase profits.104.If the demand faced by a

6、firm is elastic, selling one less unit of output willa.increase revenue.*b.decrease revenue.c.keep revenues constant.d.decrease price.105.If the demand curve a firm faces shifts to the right, usuallya.it would be impossible to tell whether the marginal revenue curve shifts.b.the marginal revenue cur

7、ve would shift to the left.*c.the marginal revenue curve would shift to the right.d.the marginal revenue curve would not shift.106.It is usually assumed that a perfectly competitive firms supply curve is given by its marginal cost curve. In order for this to be true, which of the following additiona

8、l assumptions are necessary:I.That the firm seek to maximize profits.II.That the marginal cost curve be positively sloped.III.That price exceed average variable cost.IV.That price exceed average total cost.a. All of the aboveb. I and II but not III and IVc. I and III but not II and IVd. I and II onl

9、y*e. I, II and III, but not IV107.Which of the following conditions would result in the short-run marginal cost curve not correctly reflecting the supply behavior of a profit-maximizing firm?a.The firm is a price taker.b.Price exceeds average total cost.*c.The elasticity of demand facing the firm is

10、 3.d.The firm can vary several inputs in the short run.108.If price is equal to shortrun average variable cost, the firm is at the point known asa.the breakeven point.b.the profit-maximizing point.*c.the shutdown point.d.the revenue maximizing point.109.If a price-taking firms production function is

11、 given by , its supply function is given bya.q = 2pw.*b.q = p/2w.c.q = 2p/w.d.q = 2w/p.110.If a price-taking firms production function is given by , its profit function is given bya.b.c.*d.111. Profit functions are homogeneous of degreea. zero in input and output pricesb.zero in input prices.*c.one

12、in input and output prices.d.one in input prices.112.One implication of the fact that profit functions are convex in prices is that firms will always prefera.stable input and output prices.*b.input and output prices that fluctuate about a given level.c.stable input prices and fluctuating output pric

13、es.d.fluctuating input prices and stable output prices. 113.Short-run producer surplus can be calculated by integration as (where q* is the firms profit-maximizing output level and MC(q) is its marginal cost function)a.b.c.*d.114.A profit-maximizing firms demand function for labor can be found by di

14、fferentiating*a.the profit function with respect to w.b.the cost function with respect to w.c.the supply function with respect to w.d.the production function with respect to w.115.Input demand functions that are calculated from profit functions differ from those calculated from cost functions becaus

15、ea.they assume cost-minimization.b.they hold output constant.c.they assume output price is constant.*d.they assume output is set at its profit-maximizing level.116.A firms demand for labor is known as a “derived demand” becausea.the firm gains utility from hiring more labor.*b.the amount of labor hi

16、red depends upon how much output the firm can sell.c.the wage rate paid to workers is derived from the market for labor.d.it is derived from the demand for capital.117.If the price of an input falls, a firm would increase the use of that input for two reasons:a.The input is now more productive, and

17、the firm can substitute this input for other relatively more expensive inputs.b.The input is now more productive, and overall production costs are now lower, meaning a firm may choose to increase production.*c.Overall production costs are now lower and the firm can substitute this input for other re

18、latively more expensive inputs.d.Overall production costs are now lower and the firm will have more of other inputs to use with the one in question.118.In an input market, economic rent is defined as thea.total remuneration paid to a factor of production.b.minimum amount required to retain a factor

19、of production in its present use.c.total cost for a firm of renting land, equipment, and buildings.*d.extent to which payments to a factor of production exceed the minimum amount required to retain it in its present use.119.A firm will hire additional units of any input up to the point wherea.the ma

20、rginal productivity of the input is maximized.b.the marginal cost of employing the input is minimized.*c.the expense of employing the last unit is equal to the revenue brought in by the last unit.d.the revenue brought in by the input is maximized.120.An inputs marginal revenue product is given bya.t

21、he inputs marginal expense times marginal revenue.b.the inputs marginal expense times the inputs marginal physical productivity.c.marginal revenue times the number of units employed.*d.the inputs marginal physical productivity times marginal revenue of the firms output.121.If a firm is a price taker

22、 in both the input and output markets, its marginal revenue product of labor is given bya.the price of its output times labors marginal physical productivity.b.the marginal value product of labor.c.the marginal revenue product of capital times the ratio of the wage rate to the rental rate on capital

23、.*d.all of the above.122.A profitmaximizing firm will never hire that quantity of a factor of production for which that factor has an increasing marginal productivity becausea.it would not be maximizing output.b.it would not be maximizing the productivity of labor.c.it would not be minimizing costs.

24、*d.it would not be maximizing profits.123.The substitution effect of a change in wage rate on a firms demand for labor input will be more significanta.the greater the change in output.*b.the more sharply curved are the firms isoquants.c.the flatter are the firms isoquants.d.the larger the quantity o

25、f labor employed.124.The output effect of a change in the wage rate on a firms demand for labor input will be greater*a.the larger the share of labor costs in total costs and the greater the price elasticity of demand for output.b.the larger the share of labor costs in total costs and the smaller th

26、e price elasticity of demand for output.c.the larger the share of labor costs in total costs and the higher the quantity demanded.d.the smaller the possibilities of substituting capital for labor.125.The size of the reduction in quantity of labor hired by a firm due to an increase in the wage rate depends upon all of the following excepta.what percentage of total costs are made up of labor costs.b.how much quantity demanded in the output market will be reduced by a highe