Question 1

Shut-down point is a point where price is equal to

Accepted Answer

A) ac 
B) avc 
C) afc 
D) mc 
A) ac 
B) avc 
C) afc 
D) mc

Question 2

The equality between MC and MR is

Accepted Answer

A) a necessary condition for equilibrium of the firm under perfect condition 
B) a sufficient condition for equilibrium of the firm under perfect competition 
C) a necessary but not sufficient condition for equilibrium of the firm under perfect condition 
D) a necessary and sufficient condition for equilibrium of the firm under perfect condition 
A) a necessary condition for equilibrium of the firm under perfect condition 
B) a sufficient condition for equilibrium of the firm under perfect competition 
C) a necessary but not sufficient condition for equilibrium of the firm under perfect condition 
D) a necessary and sufficient condition for equilibrium of the firm under perfect condition

Question 3

Total profits are maximized where

Accepted Answer

A) tr equals tc 
B) tr curve and tc curve are parallel 
C) tr curve and tc curves are parallel and tc exceeds tr 
D) tr curve and tc curves are parallel and tr exceeds tc 
A) tr equals tc 
B) tr curve and tc curve are parallel 
C) tr curve and tc curves are parallel and tc exceeds tr 
D) tr curve and tc curves are parallel and tr exceeds tc

Question 4

In the short-run, a competitive firm can earn

Accepted Answer

A) normal profit 
B) super normal profit 
C) loss 
D) either a or b or c depending upon the level of average cost. 
A) normal profit 
B) super normal profit 
C) loss 
D) either a or b or c depending upon the level of average cost.

Question 5

In the market period, market supply curve is

Accepted Answer

A) perfectly elastic 
B) perfectly inelastic 
C) elastic 
D) inelastic 
A) perfectly elastic 
B) perfectly inelastic 
C) elastic 
D) inelastic

Shut-down point is a point where price is equal to

The equality between MC and MR is

Total profits are maximized where

In the short-run, a competitive firm can earn

In the market period, market supply curve is

Price Determination and Market Structures

Monopolistic Competition and Monopoly

Understanding Monopoly, Price Discrimination, and Oligopoly in Economics

Microeconomics Concepts and Markets

Filters

Exam 1: Understanding Perfect Competition in Economics

Shut-down point is a point where price is equal to

The equality between MC and MR is

Total profits are maximized where

In the short-run, a competitive firm can earn

In the market period, market supply curve is

Price Determination and Market Structures

Monopolistic Competition and Monopoly

Understanding Monopoly, Price Discrimination, and Oligopoly in Economics

Microeconomics Concepts and Markets

Filters