答案1INTRODUCTION AND MICROECONOMICS.docVIP

PART 1 - CHAPTER 1 INTRODUCTION AND MICROECONOMICS Unofficial Answers 1. /a/ The more competitive the good, the more elastic is the demand schedule. B and D are incorrect because only under pure competition or a monopoly is the demand curve perfectly elastic or inelastic. C is incorrect because with four substitutes goods, demand for any one is not likely to be inelastic. B and D are incorrect because the supply curve would not shift. C is incorrect because quantity demanded at the lower price will increase. 8. /c/ The best answer because the per unit cost increases as quantity produced increases. A and D are incorrect because these are examples of increasing returns to scale. B is not the best alternative because without information about costs or output it is not possible to determine the production efficiency.  2. /c/ An increase in the price of a good with an inelastic demand curve will produce an increase in total revenue.  3. /d/ As income increases, the demand for an inferior good will decrease. A, B, and C are not the best answers because the variables given in the question are income and quantity, not price and quantity. 9./a/ Economic profits include within costs a reasonable return equal to a corporations opportunity cost. Therefore book income is usually more than economic profits. B is incorrect because the return on capital is considered by economists to be a part of costs. D is incorrect because book depreciation tends to be less than the real costs (in a period of rising price levels).4. /c/ Necessity type of goods usually have relatively inelastic demand curves. 10. /c/ In pure competition a firms marginal cost curve is the short-term supply curve.5. /c/ The demand curve for normal goods is downward sloping to the right. As unit price decreases, consumers will buy more. A and B are incorrect because only inferior goods have upward sloping demand curves. D is not the best alternative because marginal utility decreases as more units are cons