ECO 561 Course Great Wisdom / tutorialrank.com ECO 561 Course Great Wisdom / tutorialrank.com | Page 13

15) A firm can hire six workers at a wage rate of $8 per hour but must
pay $9 per
hour to all of its employees to attract a seventh worker. The marginal
wage cost of
the seventh worker is: A. $15. B. $9. C. $10. D. $21.
16) Oligopoly is difficult to analyze primarily because: A. output may
be either
homogenous or differentiated. B. the number of firms is too large to
make collusion
understandable. C. the price and output decisions of any one firm
depend on the
reactions of its rivals. D. neither allocative nor productive efficiency
is achieved.
17) A competitive firm will maximize profits at that output at which:
A. total
revenue exceeds total cost by the greatest amount. B. total revenue
and total
cost are equal. C. price exceeds average total cost by the largest
amount. D. the
difference between marginal revenue and price is at a maximum.
18) An industry comprised of a small number of firms, each of which
considers the
potential reactions of its rivals in making price-output decisions is
called: A.