Melissa Buehrlen
Instructor Somers
Business Economics
06/17/2013
Final Exam
Question 1
Antitrust legislation is an attempt by government to make competition
equal.
efficient.
structured.
fair.
Question 2
An early piece of anti-trust legislation is the
Sherman Act.
Mann Act.
DIDMCA of 1980.
Federal Reserve Act of 1913.
Question 3
The Herfindahl-Hirschman Index is used to measure
brand recognition.
the ease of market entry.
market power.
none of these choices.
Question 4
A tax on an imported product is called a
tariff.
quota.
dumping signal.
all of these choices.
Question 5
According to economic theory, profits are maximized at the rate of output where
price equals total revenue.
marginal revenue equals marginal cost.
economic profits are zero.
price and marginal revenue are equal.
Question 6
Executives should

spend an additional dollar on an activity if consumers value it by more than a dollar.
do more of something if marginal revenue is positive.
pend an additional dollar on an activity if consumers value it by less than a dollar.
do more of something if average revenue is greater than zero.
Question 7
Entry of new firms causes

accounting profits to go to zero.
market share to grown.
economic profits to go to zero.
total revenue to be maximized.
Question 8
If a firm has market power it may be able
to protect market share.
to continue to earn economic profits.
minimize marginal costs.
to maximize total revenue.
Question 9
Government may make it possible

to create a network externality.
to find ‘winners’ in the stock market.
for a firm to become a monopoly.
all of these choices.
Question 10
If a firm’s product becomes a commodity
the firm gains market power.
the firm’s strategy has apparently paid off.
the firm has become a monopoly.
the firm looses market power.
Question 11
Brand names help
create commodities.
maintain market power.
create competition.
keep economic profits…