Question 1

Idaho farmers can sell as large a quantity of their potato crop as they wish,

Accepted Answer

A)  if they set their own price in the short run, but in the long run, the market sets the price. 
B)  provided each is willing to accept the prevailing market price. 
C)  if they set their own price in the long run, but in the short run, the market sets the price. 
D)  provided quality is perceptible and determines the market price. 
A)  if they set their own price in the short run, but in the long run, the market sets the price. 
B)  provided each is willing to accept the prevailing market price. 
C)  if they set their own price in the long run, but in the short run, the market sets the price. 
D)  provided quality is perceptible and determines the market price.

Question 2

What happens in a perfectly competitive industry when economic profit is greater than zero?

Accepted Answer

A)  existing firms may expand their operations 
B)  firms may move along their LRAC curves to new outputs 
C)  there may be pressure on the market price to fall 
D)  new firms may enter the industry and all of the above 
A)  existing firms may expand their operations 
B)  firms may move along their LRAC curves to new outputs 
C)  there may be pressure on the market price to fall 
D)  new firms may enter the industry and all of the above

Question 3

In a perfectly competitive market setting, which of the following would be a true statement?

Accepted Answer

A)  Market price automatically sets itself exactly at equilibrium. 
B)  Market price rarely trends toward the equilibrium value. 
C)  Wage rates mirror marginal revenue product levels exactly. 
D)  Wage rates trend toward marginal revenue product levels. 
A)  Market price automatically sets itself exactly at equilibrium. 
B)  Market price rarely trends toward the equilibrium value. 
C)  Wage rates mirror marginal revenue product levels exactly. 
D)  Wage rates trend toward marginal revenue product levels.

Question 4

Given the data provided in the table below, the total revenue (TR) for production at quantity Q) level 4 equals

Accepted Answer

A)  zero 
B)  $1.00 
C)  $15.00 
D)  $20.00 
A)  zero 
B)  $1.00 
C)  $15.00 
D)  $20.00

Question 5

For a perfectly competitive firm, the marginal cost curve is identical to the firm's _______,.

Accepted Answer

A)  demand curve 
B)  supply curve 
C)  average total cost curve 
D)  average variable cost curve 
A)  demand curve 
B)  supply curve 
C)  average total cost curve 
D)  average variable cost curve

Question 6

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______ of investing in physical capital.

Accepted Answer

A)  typical hurdle rate 
B)  opportunity cost 
C)  degree of risk 
D)  hurdle rate premium 
A)  typical hurdle rate 
B)  opportunity cost 
C)  degree of risk 
D)  hurdle rate premium

Idaho farmers can sell as large a quantity of their potato crop as they wish,

What happens in a perfectly competitive industry when economic profit is greater than zero?

In a perfectly competitive market setting, which of the following would be a true statement?

Given the data provided in the table below, the total revenue (TR) for production at quantity Q) level 4 equals

For a perfectly competitive firm, the marginal cost curve is identical to the firm's _______,.

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______ of investing in physical capital.

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

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Exam 8: Perfect Competition

Idaho farmers can sell as large a quantity of their potato crop as they wish,

What happens in a perfectly competitive industry when economic profit is greater than zero?

In a perfectly competitive market setting, which of the following would be a true statement?

Given the data provided in the table below, the total revenue (TR) for production at quantity Q) level 4 equals

For a perfectly competitive firm, the marginal cost curve is identical to the firm's _______,.

When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______ of investing in physical capital.

Welcome to Economics

Choice in a World of Scarcity

Demand and Supply

Labor and Financial Markets

Elasticity

Consumer Choices

Cost and Industry Structure

Monopoly

Monopolistic Competition and Oligopoly

Monopoly and Antitrust Policy

Environmental Protection and Negative Externalities

Positive Externalities and Public Goods

Poverty and Economic Inequality

Issues in Labor Markets: Unions, Discrimination, Immigration

Information, Risk, and Insurance

Financial Markets

Public Economy

International Trade

Globalization and Protectionism

Filters