Question 1

In a perfectly competitive market,a decrease in output could be caused by

Accepted Answer

A) an increase in consumer demand 
B) a technological innovation 
C) a decrease in input prices 
D) a decrease in consumer demand 
A) an increase in consumer demand 
B) a technological innovation 
C) a decrease in input prices 
D) a decrease in consumer demand

Question 2

In a perfectly competitive market,a new firm can enter without any cost.

Accepted Answer

A) True 
 B)False

Question 3

The change in a firm's total revenue due to selling an additional unit of output is known as

Accepted Answer

A) marginal revenue 
B) average revenue 
C) price 
D) marginal cost 
E) marginal revenue product 
A) marginal revenue 
B) average revenue 
C) price 
D) marginal cost 
E) marginal revenue product

Question 4

In the long run,each perfectly competitive firm produces at the lowest point on

Accepted Answer

A) its short-run average total cost curve 
B) its long-run average total cost curve 
C) its marginal cost curve 
D) both its short-run and long-run average total cost curves 
E) both its short-run average cost curve and its marginal cost curve 
A) its short-run average total cost curve 
B) its long-run average total cost curve 
C) its marginal cost curve 
D) both its short-run and long-run average total cost curves 
E) both its short-run average cost curve and its marginal cost curve

Question 5

In a perfectly competitive market,the driving force behind long-run economic change is

Accepted Answer

A) government intervention 
B) employment 
C) economic profit or loss 
D) management 
E) altruism 
A) government intervention 
B) employment 
C) economic profit or loss 
D) management 
E) altruism

Question 6

Of the following products,which is most standardized?

Accepted Answer

A) pizza 
B) concrete 
C) automobiles 
D) clothing 
E) paintings 
A) pizza 
B) concrete 
C) automobiles 
D) clothing 
E) paintings

Question 7

Perfect competition is characterized by a(n)

Accepted Answer

A) large number of buyers and sellers,each one a price taker 
B) single seller and many buyers 
C) small number of sellers offering differentiated products 
D) intense rivalry among several competitors 
E) small number of buyers and sellers who negotiate the market price 
A) large number of buyers and sellers,each one a price taker 
B) single seller and many buyers 
C) small number of sellers offering differentiated products 
D) intense rivalry among several competitors 
E) small number of buyers and sellers who negotiate the market price

Question 8

-Figure 9-5 shows the total revenue and total cost data for a perfectly competitive firm.The profit earned at the profit-maximizing output level is

Accepted Answer

A) $80 
B) $10 
C) $0 
D) $20 
E) $15 
A) $80 
B) $10 
C) $0 
D) $20 
E) $15

Question 9

The demand curve facing a typical firm in a perfectly competitive market is horizontal.

Accepted Answer

A) True 
 B)False

Question 10

If an industry's long-run supply curve is negatively-sloped,the industry has

Accepted Answer

A) increasing costs. 
B) decreasing costs. 
C) constant costs. 
D) impossible to predict. 
A) increasing costs. 
B) decreasing costs. 
C) constant costs. 
D) impossible to predict.

Question 11

The perfectly competitive firm's supply curve includes

Accepted Answer

A) that portion of the marginal cost curve above the minimum point on the average variable cost curve 
B) its economic profit schedule 
C) that portion of the marginal revenue curve above minimum average variable cost 
D) that portion of the average total cost curve above minimum average variable cost 
E) the firm's effective resource demand curve 
A) that portion of the marginal cost curve above the minimum point on the average variable cost curve 
B) its economic profit schedule 
C) that portion of the marginal revenue curve above minimum average variable cost 
D) that portion of the average total cost curve above minimum average variable cost 
E) the firm's effective resource demand curve

Question 12

If price equals average total cost at the profit-maximizing output level,then in the short run,

Accepted Answer

A) profit is positive 
B) profit is negative 
C) the firm will go out of business 
D) the firm will earn zero profit 
E) the firm's supply curve is horizontal 
A) profit is positive 
B) profit is negative 
C) the firm will go out of business 
D) the firm will earn zero profit 
E) the firm's supply curve is horizontal

Question 13

Which of the following is true about perfect competition?

Accepted Answer

A) Each firm faces a downward-sloping demand curve. 
B) Each firm must face a horizontal demand curve. 
C) Firms are price-makers. 
D) Marginal cost equals average cost. 
E) Firms can increase sales by lowering their price. 
A) Each firm faces a downward-sloping demand curve. 
B) Each firm must face a horizontal demand curve. 
C) Firms are price-makers. 
D) Marginal cost equals average cost. 
E) Firms can increase sales by lowering their price.

Question 14

In a perfectly competitive market,the market demand curve is horizontal.

Accepted Answer

A) True 
 B)False

Question 15

-In short-run equilibrium,the perfectly competitive firm of Figure 9-8 will earn a total economic profit of

Accepted Answer

A) zero 
B) $950 
C) $825 
D) $1,425 
E) $575 
A) zero 
B) $950 
C) $825 
D) $1,425 
E) $575

Question 16

Figure 9-23
  
-In Figure 9-23,the minimum price at which this firm will supply output is

Accepted Answer

A) $5. 
B) $6. 
C) $10. 
D) $14. 
A) $5. 
B) $6. 
C) $10. 
D) $14.

Question 17

The key assumption that distinguishes a constant cost industry from other types of industries is that

Accepted Answer

A) firms can earn only a normal profit in the long run 
B) each firm's ATC curve is unaffected by changes in industry output 
C) each firm has a horizontal long-run average total cost curve 
D) there are no economies of scale available to the firms in the industry 
E) each firm faces a horizontal demand curve for its output 
A) firms can earn only a normal profit in the long run 
B) each firm's ATC curve is unaffected by changes in industry output 
C) each firm has a horizontal long-run average total cost curve 
D) there are no economies of scale available to the firms in the industry 
E) each firm faces a horizontal demand curve for its output

Question 18

Figure 9-15
  
-Figure 9-15 depicts the cost curves for a perfectly competitive firm.This firm's short run supply curve is the section of the MC curve between points

Accepted Answer

A) A and D. 
B) B and D. 
C) C and D. 
D) B and C. 
A) A and D. 
B) B and D. 
C) C and D. 
D) B and C.

Question 19

The perfectly competitive firm's goal is to

Accepted Answer

A) maximize the price of its output. 
B) minimize its total cost. 
C) maximize its profits. 
D) eliminate its competition. 
A) maximize the price of its output. 
B) minimize its total cost. 
C) maximize its profits. 
D) eliminate its competition.

Question 20

In a long-run perfectly competitive equilibrium,

Accepted Answer

A) marginal cost and marginal revenue are the greatest distance apart 
B) barriers to entry are established by entrenched firms 
C) the typical firm will earn an economic profit 
D) average total cost is rising 
E) price and marginal cost are equal to minimum short-run and long-run average total cost 
A) marginal cost and marginal revenue are the greatest distance apart 
B) barriers to entry are established by entrenched firms 
C) the typical firm will earn an economic profit 
D) average total cost is rising 
E) price and marginal cost are equal to minimum short-run and long-run average total cost

In a perfectly competitive market,a decrease in output could be caused by

In a perfectly competitive market,a new firm can enter without any cost.

The change in a firm's total revenue due to selling an additional unit of output is known as

In the long run,each perfectly competitive firm produces at the lowest point on

In a perfectly competitive market,the driving force behind long-run economic change is

Of the following products,which is most standardized?

Perfect competition is characterized by a(n)

-Figure 9-5 shows the total revenue and total cost data for a perfectly competitive firm.The profit earned at the profit-maximizing output level is

The demand curve facing a typical firm in a perfectly competitive market is horizontal.

If an industry's long-run supply curve is negatively-sloped,the industry has

The perfectly competitive firm's supply curve includes

If price equals average total cost at the profit-maximizing output level,then in the short run,

Which of the following is true about perfect competition?

In a perfectly competitive market,the market demand curve is horizontal.

-In short-run equilibrium,the perfectly competitive firm of Figure 9-8 will earn a total economic profit of

Figure 9-23 -In Figure 9-23,the minimum price at which this firm will supply output is

The key assumption that distinguishes a constant cost industry from other types of industries is that

Figure 9-15 -Figure 9-15 depicts the cost curves for a perfectly competitive firm.This firm's short run supply curve is the section of the MC curve between points

The perfectly competitive firm's goal is to

In a long-run perfectly competitive equilibrium,

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 9: Perfect Competition

In a perfectly competitive market,a decrease in output could be caused by

In a perfectly competitive market,a new firm can enter without any cost.

The change in a firm's total revenue due to selling an additional unit of output is known as

In the long run,each perfectly competitive firm produces at the lowest point on

In a perfectly competitive market,the driving force behind long-run economic change is

Of the following products,which is most standardized?

Perfect competition is characterized by a(n)

-Figure 9-5 shows the total revenue and total cost data for a perfectly competitive firm.The profit earned at the profit-maximizing output level is

The demand curve facing a typical firm in a perfectly competitive market is horizontal.

If an industry's long-run supply curve is negatively-sloped,the industry has

The perfectly competitive firm's supply curve includes

If price equals average total cost at the profit-maximizing output level,then in the short run,

Which of the following is true about perfect competition?

In a perfectly competitive market,the market demand curve is horizontal.

-In short-run equilibrium,the perfectly competitive firm of Figure 9-8 will earn a total economic profit of

Figure 9-23 -In Figure 9-23,the minimum price at which this firm will supply output is

The key assumption that distinguishes a constant cost industry from other types of industries is that

Figure 9-15 -Figure 9-15 depicts the cost curves for a perfectly competitive firm.This firm's short run supply curve is the section of the MC curve between points

The perfectly competitive firm's goal is to

In a long-run perfectly competitive equilibrium,

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

B:Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters