Which of the following is a characteristic of perfect competition? (Mark all th… Show more Some MC Questions 1) Which of the following is a characteristic of perfect competition? (Mark all that apply.) differentiated products high barriers to entry many small buyers and sellers perfect information 2) Suppose that for Dr. Doback’s consumption bundle MUx/Px is greater than MUy/Py for the last unit of each good purchased. If Dr. Doback is currently spending all of his income, he could increase his total utility by ____ his consumption of good X and _____ his consumption of good Y increasing; decreasing decreasing; decreasing decreasing; increasing increasing; increasing 3) Economies of scale occur when long run average total cost increases as output increases long run total cost decreases as output increases long run average total cost decreases as output increases long run total cost increases as output increases 4) Which of the following statements about the Law of Diminishing Marginal Returns isTRUE? (Mark all that apply.) LDMR only applies in the short run. LDMR explains why the short run cost curves eventually increase as output increases. LDMR states that as successive units of a fixed resource are added to a variable resource, the marginal product of the fixed resource eventually decreases. 5) Which of the following statements about utility is FALSE? (Mark all that apply.) We can compare the utils assigned to a good by multiple people. We cannot compare the utils assigned to a good by multiple people. Utility is measure in utils. We cannot compare the utils assigned to multiple goods by one person. 6) Which of the following will cause an increase in the long run cost curves? (Mark all that apply.) an increase in taxes an increase in the price of an input an improvement in technology 7) Which of the following is one of the properties of most indifference curves? (Mark all that apply.) indifference curves farther from the origin represent a higher level of total utility indifference curves sometimes cross indifference curves are upward sloping indiference curves are bowed inward • Show less