Question 1

The demand curve that an individual competitive firm faces is known as its

Accepted Answer

A)  excess demand curve. 
B)  market demand curve. 
C)  residual demand curve. 
D)  leftover demand curve. 
A)  excess demand curve. 
B)  market demand curve. 
C)  residual demand curve. 
D)  leftover demand curve.

Question 2

Long-run market supply curves are upward sloping if

Accepted Answer

A)  firms are identical. 
B)  the number of firms is restricted in the long run. 
C)  input prices fall as the industry expands. 
D)  All of the above. 
A)  firms are identical. 
B)  the number of firms is restricted in the long run. 
C)  input prices fall as the industry expands. 
D)  All of the above.

Question 3

If a firm is operating at an output level where losses are minimized,the firm

Accepted Answer

A)  has no incentive to stay in the industry. 
B)  is better off exiting the industry. 
C)  is maximizing profits. 
D)  will shut down. 
A)  has no incentive to stay in the industry. 
B)  is better off exiting the industry. 
C)  is maximizing profits. 
D)  will shut down.

Question 4

All the supply of peppermint oil is produced from mint plants grown in one county by several competitive growers (the number of growers is not limited).The quality of land in the county varies greatly.Would you expect the long-run market supply curve to slope upward,downward,or remain constant? Why?

Accepted Answer

The long-run market supply curve will sl

Question 5

If a profit-maximizing firm finds that,at its current level of production,MR > MC,it will

Accepted Answer

A)  earn greater profits than if MR = MC. 
B)  increase output. 
C)  decrease output. 
D)  shut down. 
A)  earn greater profits than if MR = MC. 
B)  increase output. 
C)  decrease output. 
D)  shut down.

Question 6

Suppose TC = 10 + (0.1 ∗ q2).If there are 100 identical firms in the market,the market supply curve is

Accepted Answer

A)  Q = 1000 ∗ p. 
B)  Q = 500 ∗ p. 
C)  Q = 100 ∗ p. 
D)  Q = 10. 
A)  Q = 1000 ∗ p. 
B)  Q = 500 ∗ p. 
C)  Q = 100 ∗ p. 
D)  Q = 10.

Question 7

When the production of a good involves several inputs and inputs are used in fixed proportions,an increase in the cost of one input will usually cause total costs to

Accepted Answer

A)  rise more than in proportion. 
B)  rise less than in proportion. 
C)  remain unchanged. 
D)  rise by the exact amount of the input price increase. 
A)  rise more than in proportion. 
B)  rise less than in proportion. 
C)  remain unchanged. 
D)  rise by the exact amount of the input price increase.

The demand curve that an individual competitive firm faces is known as its

Long-run market supply curves are upward sloping if

If a firm is operating at an output level where losses are minimized,the firm

All the supply of peppermint oil is produced from mint plants grown in one county by several competitive growers (the number of growers is not limited).The quality of land in the county varies greatly.Would you expect the long-run market supply curve to slope upward,downward,or remain constant? Why?

If a profit-maximizing firm finds that,at its current level of production,MR > MC,it will

Suppose TC = 10 + (0.1 ∗ q²).If there are 100 identical firms in the market,the market supply curve is

When the production of a good involves several inputs and inputs are used in fixed proportions,an increase in the cost of one input will usually cause total costs to

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 8: Competitive Firms and Markets

The demand curve that an individual competitive firm faces is known as its

Long-run market supply curves are upward sloping if

If a firm is operating at an output level where losses are minimized,the firm

If a profit-maximizing firm finds that,at its current level of production,MR > MC,it will

Suppose TC = 10 + (0.1 ∗ q2).If there are 100 identical firms in the market,the market supply curve is

When the production of a good involves several inputs and inputs are used in fixed proportions,an increase in the cost of one input will usually cause total costs to

Introduction

Supply and Demand

Applying the Supply-And-Demand Model

Consumer Choice

Applying Consumer Theory

Firms and Production

Costs

Applying the Competitive Model

General Equilibrium and Economic Welfare

Monopoly

Pricing and Advertising

Oligopoly and Monopolistic Competition

Game Theory

Factor Markets

Interest Rates, Investments, and Capital Markets

Uncertainty

Externalities, Open-Access, and Public Goods

Asymmetric Information

Contracts and Moral Hazards

Filters

Suppose TC = 10 + (0.1 ∗ q²).If there are 100 identical firms in the market,the market supply curve is