+1 (347) 474-1028 info@essayparlour.com

i… Show more Question 1 The perfectly competitive firm max

Paper help Economics i… Show more Question 1 The perfectly competitive firm max

Economics

i… Show more Question 1 The perfectly competitive firm max

i… Show more Question 1 The perfectly competitive firm maximizes profits when Question 1 options: it produces and sells the quantity at which the difference between average revenue and average cost is the greatest. it produces and sells the quantity at which marginal revenue and marginal cost are equal. it produces and sells the quantity at which the difference between price and average cost is the greatest. it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest. Question 2 An industry in which an increase in output leads to a reduction in long-run per-unit costs is a(n) Question 2 options: decreasing-cost industry. constant-cost industry. break-even cost industry. increasing-cost industry. Question 3 A firm that has negative economic profits has accounting profits that are Question 3 options: zero. positive. negative. indeterminate without more information. Question 4 Which statement is not true for a perfectly competitive firm? Question 4 options: MR = TR P = AR P = MR AR = MR Question 5 At the short-run shutdown price the firm Question 5 options: is earning negative profits. is earning positive profits. may be earning a positive or negative profit depending upon costs. is making a normal rate of return on its capital investment. Question 6 Refer to the above figure. The figure represents the market demand and supply curves for widgets. What statement can be made about the demand curve for an individual firm in this market? Question 6 options: An individual firm’s demand curve will be a smaller version of the market demand curve. An individual firm’s demand curve will be horizontal at $5. An individual firm’s demand curve will be horizontal at a price below $5. An individual firm’s demand curve cannot be determined from the graph above. Question 7 A true signal must Question 7 options: explain in detail why something should be done. convey information about the long-run future. convey information and direct the resource owners to act appropriately. convey information only. Question 8 The opportunity cost to society of producing one more unit of the good is Question 8 options: the optimal cost. efficiency costing. marginal cost. average cost. Question 9 In the long-run the price for a perfectly competitive firm Question 9 options: will be determined by the firm’s supply and demand curves. will equal the average total cost where the average total cost is at a minimum. will allow for positive economic profits. will equal marginal cost where marginal cost is at a minimum. Question 10 Refer to the above figure. Line C in Panel B does not represent Question 10 options: total revenue. marginal revenue. average revenue. the equilibrium price. Question 11 Refer to the above figure. The market supply and demand curves in a perfectly competitive market intersect at $4. Which of the graphs represent the situation for an individual firm? Question 11 options: Panel A Panel B Panel C Panel D Question 12 If markets are perfectly competitive then the production of goods Question 12 options: will occur at an average total cost value that is above the minimum. will always lead to business failures. will require government intervention. will use the least costly combination of resources. Question 13 A perfectly competitive firm’s average total cost curve reaches its minimum point at an output rate of 80 units, at which average total costs equal $25 per unit. At this output rate, average fixed costs are $5 per unit. The market clearing price is $25 per unit. It can be concluded that at the output rate of 100 units, Question 13 options: the firm’s marginal costs equal $20 per unit. the firm should shut down, because the price of $25 per unit is less than average variable costs of $30 per unit. the firm breaks even in the short run and earns zero economic profits. the firm earns positive economic profits per unit equal to $20. Question 14 For a perfect competitor, marginal revenue equals Question 14 options: average revenue divided by price. the market price. the slope of the demand curve. price divided by average revenue. Question 15 Refer to the above figure. If an individual firm wants to maximize profit it should Question 15 options: withdraw their product from the market forcing the market price up. charge less than $5 for their product since a lower price will attract more customers. charge more than $5 for their product since increasing the price will increase revenues. charge $5 for their product. Question 16 Refer to the above table. If the price is $6 the perfectly competitive firm should produce Question 16 options: 107 units. 105 units. 104 units. 106 units. Question 17 A firm in a perfectly competitive industry is a Question 17 options: price searcher. price controller. price competitor. price taker. Question 18 Refer to the above figure. Profits for this firm will be maximized at Question 18 options: point B. a quantity greater than point C. a quantity between points B and C. point C. Question 19 If marginal revenue is less than marginal cost, the firm should Question 19 options: raise price. raise marginal revenue. increase its rate of output. decrease its rate of output. Question 20 Which of the following is always true for a perfectly competitive firm? Question 20 options: P = D = AVC P = D = MR MC = MR = AVC AVC = ATC = P • Show less

Order Now

Ready to try a high quality writing service? Get a discount here