Question 1

Exhibit 7-2 Cost per unit curves
  
-In Exhibit 7-2,if the price of the firm's product is $2.00 per unit,the firm will produce:

Accepted Answer

A) 5 units per day. 
B) 10 units per day. 
C) 15 units per day. 
D) 20 units per day. 
A) 5 units per day. 
B) 10 units per day. 
C) 15 units per day. 
D) 20 units per day.

Question 2

In the short run,the supply curve for a perfectly competitive firm is its marginal cost curve for all levels of output.

Accepted Answer

A) True 
 B)False

Question 3

In a perfectly competitive industry - assuming the short-run average total cost increases as the output of the industry expands - the industry supply curve,in the long run,will:

Accepted Answer

A) first have a positive slope and then a negative slope. 
B) have a negative slope. 
C) be perfectly horizontal. 
D) be perfectly vertical. 
E) have a positive slope. 
A) first have a positive slope and then a negative slope. 
B) have a negative slope. 
C) be perfectly horizontal. 
D) be perfectly vertical. 
E) have a positive slope.

Question 4

If input prices for a perfectly competitive firm increase as the output of the industry expands in the long run,the long-run industry supply curve will:

Accepted Answer

A) have a constant slope. 
B) have a negative slope. 
C) be perfectly horizontal. 
D) have a positive slope. 
A) have a constant slope. 
B) have a negative slope. 
C) be perfectly horizontal. 
D) have a positive slope.

Question 5

Exhibit 7-2 Cost per unit curves
  
-In Exhibit 7-2,if the price of the firm's product is $3 per unit,the firm will:

Accepted Answer

A) suffer a loss. 
B) enjoy a profit. 
C) be indifferent about whether to produce or not to produce. 
D) have to increase the levels of production. 
A) suffer a loss. 
B) enjoy a profit. 
C) be indifferent about whether to produce or not to produce. 
D) have to increase the levels of production.

Exhibit 7-2 Cost per unit curves -In Exhibit 7-2,if the price of the firm's product is $2.00 per unit,the firm will produce:

In the short run,the supply curve for a perfectly competitive firm is its marginal cost curve for all levels of output.

In a perfectly competitive industry - assuming the short-run average total cost increases as the output of the industry expands - the industry supply curve,in the long run,will:

If input prices for a perfectly competitive firm increase as the output of the industry expands in the long run,the long-run industry supply curve will:

Exhibit 7-2 Cost per unit curves -In Exhibit 7-2,if the price of the firm's product is $3 per unit,the firm will:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 7: Perfect competition

Exhibit 7-2 Cost per unit curves -In Exhibit 7-2,if the price of the firm's product is $2.00 per unit,the firm will produce:

In the short run,the supply curve for a perfectly competitive firm is its marginal cost curve for all levels of output.

In a perfectly competitive industry - assuming the short-run average total cost increases as the output of the industry expands - the industry supply curve,in the long run,will:

If input prices for a perfectly competitive firm increase as the output of the industry expands in the long run,the long-run industry supply curve will:

Exhibit 7-2 Cost per unit curves -In Exhibit 7-2,if the price of the firm's product is $3 per unit,the firm will:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Monopoly

Monopolistic competition and oligopoly

Policy issues: resource taxes and climate change

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters