Question

1. According to Fredrick Taylor, creator of "Taylorism" or "Scientific Management," the best way to control shirking was to

a. pay wages higher than prevailing market wages so employees will take care not to quit their job with the company

b. create residual claimants

c. pay workers piece rate wages

d. have supervisors closely watch and monitor workers

e. instill a strong motivation in workers to do their best

2. Following its near bankruptcy in 1922, General Motors pioneered the decentralized management structure in which the firm was reorganized into semi-independent profit centers. Vice-presidents were appointed to manage these profit centers and were told that their bonuses would depend on the profitability of their division. This reorganization was designed to

a. reduce management costs
b. better capture economies of scale
c. create a more centralized management system
d. decentralize decision making and create residual claimants
e. put managerial compensation on a "piece rate" basis

3. What happens to a firm if its economic profits = 0?

a. It will immediately go out of business

b. It will eventually go out of business

c. It will be earning an accounting profit that is normal

d. Other firms will enter the industry and take profits even lower for all

e. Its profits will rise as other firms in this industry will quickly get out of this industry

4. At equilibrium in an oligopoly, the size of economic profits will primarily depend on

a. the degree to which the oligopolists can collectively reduce barriers to entry

b. whether the oligopolists can reduce their MOS

c. the degree to which the oligopolists can cooperate rather than compete

d. the ability of the oligopolists to remain small and unnoticed

5. In which market structures would we usually see economic profits at equilibrium?

a. only in monopoly

b. in monopoly and in monopolistic competition

c. in monopoly and strong or cooperating oligopolies

d. in monopoly and in differentiated oligopoly

e. in all market structures

6. In which market structure will we usually find the fastest spread or dissemination of new technology?

a. monopoly

b. perfect competition

c. pure oligopoly

d. differentiated oligopoy

e. monopolistic competition

Answer 1

I can give answer of Question 3,4,5 and 6

Answer 3) Option C). It will be earning an accounting profit that is normal.

If firm  economic profits = 0 .It means that average cost is equal to average revenue. In this firm will earn an accounting profit that is normal.

Answer 4 ) Option C)  the degree to which the oligopolists can cooperate rather than compete

At equilibrium in an oligopoly, the size of economic profits will primarily depend on  the degree to which the oligopolists can cooperate rather than compete.

Answer 5 Option C) in monopoly and strong or cooperating oligopolies

In monopoly and strong or cooperating oligopolies market structures would we usually see economic profits at equilibrium. The reason is that they can have profits as in long time at equilibrium , there average revenue is greater than average cost.

Answer 6 Option e. monopolistic competition.

In monopolistic competition market, fastest spread or dissemination of new technology take place. The reason is that they product differentiated goods.