Microeconomics

Question 1

What causes a shift in the S or D Curve?

Answer 1

Shifts are caused by a change in an independent variable other than price

Question 2

Common value auction

Answer 2

the value of the items to be auctioned will be the same to any bidder, but the bidders do not know the value until the auction

Question 3

Private Value Auction

Answer 3

the value that each bidder places is the value it has to them

Question 4

Ascending price auction

Answer 4

what I think of when I think about auctions

Question 5

US Treasury securitys auction type

Answer 5

single price auctinom but bidders may also submit a noncompetitive bid

Question 6

Noncompetitive bid

Answer 6

such a bid indicated that the bidder will accept the amount indicated at the price determined by auction, rather that specifying a maximum price. Is an option in US security auctions

Question 7

Marginal Benefit (MB)

Answer 7

means “demand”

Question 8

Define Producer Surplus

Answer 8

the excess of market price above the opportunity cost of production

Question 9

Marginal Cost (MC)

Answer 9

equals supply

Question 10

Own Price Elasticity

Answer 10

%Qd / %price

Question 11

Cross price elasticity

Answer 11

% Qd / %price of related

Question 12

income elasticity

Answer 12

%Qd / % income

Question 13

Marginal Cost equation

Answer 13

change in TC/ Change in output

Question 14

Distance between ATC and AVC curve is equal to

Answer 14

the Average Fixed Cost

Question 15

Where does the MC intersect the AVC and ATC

Answer 15

at the minimum points of AVC and ATC

Question 16

Shape of ATC and AVC

Answer 16

U shaped

Question 17

MC Curve above the AVC is the

Answer 17

firms short run supply curve

Question 18

Average Total Costs is equal to

Answer 18

Average fixed cost plus average variable cost

Question 19

The short run is defined as

Answer 19

the time period at which factors of production are fixed

Question 20

When MC equals AVC

Answer 20

the firsm will shutdown in BOTH the short and long run

Question 21

Breakeven point is where (perfect Comp)

Answer 21

Marginal cost equals average total cost

Question 22

Short Run shutdown point (perfect Comp)

Answer 22

average revenue is less than average variable cost

Question 23

Long Run shutdown point (perfect Comp)

Answer 23

average revenue is less than average total cost