Question

1.

Which of the following can be inferred if we know that the local tennis stadium has a fixed number of seats and the equilibrium price for the Men's Championship game is $15 and the Women's Championship game is $25?

		The demand to attend women's games must be less than that to attend men's games.
		The supply of men's games must be less elastic than the supply of women's games.
		The demand to attend women's games must be greater than that to attend men's games.
		Women's games must be more expensive to stage than men's games.

2.

The value of marginal product in which of the following markets is the same as marginal revenue product?

		A monopolistic market
		An oligopolistic market
		A monopolistically competitive market
		A perfectly competitive market

3.

Capital is not exemplified by which of the following?

		The communications system used by the security officers on campus.
		The lecture rooms at your college.
		The money held in a firm's account at a lending institution.
		A shovel used by a road crew.

Answer 1

Ans 1: The demand to attend women's games must be greater than that to attend men's games (because of the equilibrium price level we can infer that the demand to attend women's game is greater. Since, the supply is fixed, so the demand must be high for women's game that is why the equilibrium prices are high for women's game).

Ans 2: Perfect competiton (In perfect competition, the marginal product is equal to marginal revenue product because the firms in the perfect competition are price takers, while the firms under oligopoly, monopoly and monopolistically competitive market are price makers)

Ans 3: The money held in a firm's account at a lending institution. (This is not an example for capital, the amount would be savings of the firm). All other options are an example of capital (a tool or machinery).