Question 1

Exhibit 7-17  Marginal revenue and cost per unit curves   In Exhibit 7-17, if the price of the firm's product is $20 per unit, the firm will produce:

Accepted Answer

A)  20 units per day. 
B)  40 units per day. 
C)  60 units per day. 
D)  80 units per day. 
A)  20 units per day. 
B)  40 units per day. 
C)  60 units per day. 
D)  80 units per day.

Question 2

Perfect competition is defined as market structure in which:

Accepted Answer

A)  there are many small sellers. 
B)  the product is homogeneous. 
C)  it is very easy for firms to enter or exit the market. 
D)  all of the above. 
A)  there are many small sellers. 
B)  the product is homogeneous. 
C)  it is very easy for firms to enter or exit the market. 
D)  all of the above.

Question 3

Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10. This firm is:

Accepted Answer

A)  making an economic profit of 10. 
B)  an example of monopolistic competition. 
C)  going to go out of business in the long run. 
D)  a monopolist for a product with a relatively inelastic demand. 
E)  perfectly competitive in long-run equilibrium. 
A)  making an economic profit of 10. 
B)  an example of monopolistic competition. 
C)  going to go out of business in the long run. 
D)  a monopolist for a product with a relatively inelastic demand. 
E)  perfectly competitive in long-run equilibrium.

Question 4

The demand for the product of a competitive price-taker firm is:

Accepted Answer

A)  perfectly inelastic. 
B)  perfectly elastic. 
C)  greater than zero but less than one. 
D)  dependent on the availability of substitutes for the firm's product. 
A)  perfectly inelastic. 
B)  perfectly elastic. 
C)  greater than zero but less than one. 
D)  dependent on the availability of substitutes for the firm's product.

Question 5

Suppose that 1000 identical sellers each set their profit-maximizing output level at 18 units when price equals $10. Then what is market quantity supplied at a price of $10.

Accepted Answer

A)  100. 
B)  1,000. 
C)  10,000. 
D)  18,000. 
A)  100. 
B)  1,000. 
C)  10,000. 
D)  18,000.

Question 6

If a perfectly competitive firm charges more than the market price, then it loses all of its customers.

Accepted Answer

A) True 
 B)False

Exhibit 7-17 Marginal revenue and cost per unit curves In Exhibit 7-17, if the price of the firm's product is $20 per unit, the firm will produce:

Perfect competition is defined as market structure in which:

Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10. This firm is:

The demand for the product of a competitive price-taker firm is:

Suppose that 1000 identical sellers each set their profit-maximizing output level at 18 units when price equals $10. Then what is market quantity supplied at a price of $10.

If a perfectly competitive firm charges more than the market price, then it loses all of its customers.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters

Exam 7: Perfect Competition

Exhibit 7-17 Marginal revenue and cost per unit curves In Exhibit 7-17, if the price of the firm's product is $20 per unit, the firm will produce:

Perfect competition is defined as market structure in which:

Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10. This firm is:

The demand for the product of a competitive price-taker firm is:

Suppose that 1000 identical sellers each set their profit-maximizing output level at 18 units when price equals $10. Then what is market quantity supplied at a price of $10.

If a perfectly competitive firm charges more than the market price, then it loses all of its customers.

Introducing the Economic Way of Thinking

Production Possibilities, Opportunity Cost, and Economic Growth

Market Demand and Supply

Markets in Action

Price Elasticity of Demand

Production Costs

Monopoly

Monopolistic Competition and Oligopoly

Labor Markets and Income Distribution

Gross Domestic Product

Business Cycles and Unemployment

Inflation

Aggregate Demand and Supply

Fiscal Policy

The Public Sector

Federal Deficits, Surpluses, and the National Debt

Money and the Federal Reserve System

Money Creation

Policy Disputes Using the Self-Correcting Aggregate Demand and Supply Model

International Trade and Finance

Economies in Transition

Growth and the Less-Developed Countries

Filters