The following figure shows equilibrium at the industry and firm level. Figure 9.6 In the figure, SS1U1B11S1U1B0,SS1U1B12S1U1B0,SS1U1B13 S1U1B0are the market supply curves. DS1U1B11S1U1B0 and DS1U1B12S1U1B0 are the market demand curves. MC is the marginal cost curve of the firm. MRS1U1B11S1U1B0 and MRS1U1B12 S1U1B0are the marginal revenue curves of the firm. ATC is the average-total-cost curve of the firm. - According to Figure 9.6,in the long run,the firm:

A) will produce at quantity 9 and price $1.50. B) will produce at quantity 9 and price $1. C) will produce at quantity 10 and price $1.50. D) will produce at quantity 19 and price $1.25. E) will shut down. A) will produce at quantity 9 and price $1.50. B) will produce at quantity 9 and price $1. C) will produce at quantity 10 and price $1.50. D) will produce at quantity 19 and price $1.25. E) will shut down.

Exam 9: Perfect Competition

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.2 MC: Marginal cost curve MR: Marginal revenue curve ATC: Average-total-cost curve AVC: Average-variable-cost curve -Refer to Figure 9.2.If the marginal-revenue curve would have intersected the average-total-cost curve at the latter's lowest point and the firm maximized profit,then total profit would have been equal to:

(Multiple Choice)

4.9/5

(80)

Question 21

Under perfect competition,entry of new firms into the market in the long run tends to:

(Multiple Choice)

4.8/5

(74)

Question 22

The following figure shows equilibrium at the industry and firm level. Figure 9.6 In the figure, S₁,S₂,S₃are the market supply curves. D₁ and D₂ are the market demand curves. MC is the marginal cost curve of the firm. MR₁ and MR₂are the marginal revenue curves of the firm. ATC is the average-total-cost curve of the firm. -According to Figure 9.6,an upward shift of the MR curve will result from:

(Multiple Choice)

4.8/5

(87)

Question 23

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.5 MC: Marginal cost curve MR: Marginal revenue curve. ATC: Average-total-cost curve AVC: Average-variable-cost curve -Assume the price facing the firm in Figure 9.5 is P_1.Which of the following statements is true?

(Multiple Choice)

4.8/5

(78)

Question 24

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.2 MC: Marginal cost curve MR: Marginal revenue curve ATC: Average-total-cost curve AVC: Average-variable-cost curve -Refer to Figure 9.2.If the marginal-revenue curve would have intersected the average-total-cost curve at its lowest point and the firm maximized profit,then total revenue would have been equal to:

(Multiple Choice)

4.9/5

(89)

Question 25

If the marginal cost exceeds the marginal revenue,a perfectly competitive firm should:

(Multiple Choice)

4.9/5

(85)

Question 26

Under perfect competition,the per unit revenue of the firm is equal to its marginal revenue.

(True/False)

4.8/5

(87)

Question 27

Above-normal profits earned by existing firms in a perfectly competitive market will eventually lead to:

(Multiple Choice)

4.9/5

(74)

Question 28

When firms leave a perfectly competitive market,then,other things remaining unchanged:

(Multiple Choice)

4.8/5

(84)

Question 29

Why is a perfectly competitive firm said to be a price taker?

(Multiple Choice)

4.8/5

(61)

Question 30

The following figure shows equilibrium at the industry and firm level. Figure 9.6 In the figure, S₁,S₂,S₃are the market supply curves. D₁ and D₂ are the market demand curves. MC is the marginal cost curve of the firm. MR₁ and MR₂are the marginal revenue curves of the firm. ATC is the average-total-cost curve of the firm. - According to Figure 9.6,in the long run,the firm:

(Multiple Choice)

5.0/5

(94)

Question 31

The figure given below shows the revenue and the cost curves of a perfectly competitive firm. Figure 9.3 - In Figure 9.3,at equilibrium,the firm enjoys a profit of:

(Multiple Choice)

4.7/5

(74)

Question 32

When the perfectly competitive firm's demand curve lies above its average total cost curve,the firm incurs an economic loss at that level of output.

(True/False)

4.9/5

(87)

Question 33

The permanent shut down point of a perfectly competitive firm in the long run is:

(Multiple Choice)

4.8/5

(76)

Question 34

If,at the profit-maximizing level of output,a typical perfectly competitive firm's price is greater than its average total cost,the firm should increase output.

(True/False)

5.0/5

(92)

Question 35

Since the beginning of the millennium,the United States has witnessed closure of many Internet start-up companies.According to the model of perfect competition,these companies must have shut down in the short run because:

(Multiple Choice)

4.9/5

(82)

Question 36

The figure given below shows the revenue and cost curves of a perfectly competitive firm. Figure 9.2 MC: Marginal cost curve MR: Marginal revenue curve ATC: Average-total-cost curve AVC: Average-variable-cost curve -Refer to Figure 9.2.Compute the profit earned by the firm at the profit-maximizing level of output.

(Multiple Choice)

4.9/5

(78)

Question 37

Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price,the difference between the two is:

(Multiple Choice)

4.9/5

(79)

Question 38

The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4 D: Demand curve MC: Marginal cost curve ATC: Average-total cost curve AVC: Average-variable-cost curve -Refer to Figure 9.4.The total profit or loss for the firm is:

(Multiple Choice)

4.8/5

(81)

Question 39

Under long-run equilibrium in perfect competition,each firm operates at the minimum point of its average-variable-cost curve.

(True/False)

4.8/5

(86)

Question 40

Showing 21 - 40 of 135

Under perfect competition,entry of new firms into the market in the long run tends to:

If the marginal cost exceeds the marginal revenue,a perfectly competitive firm should:

Under perfect competition,the per unit revenue of the firm is equal to its marginal revenue.

Above-normal profits earned by existing firms in a perfectly competitive market will eventually lead to:

When firms leave a perfectly competitive market,then,other things remaining unchanged:

Why is a perfectly competitive firm said to be a price taker?

The figure given below shows the revenue and the cost curves of a perfectly competitive firm. Figure 9.3 - In Figure 9.3,at equilibrium,the firm enjoys a profit of:

When the perfectly competitive firm's demand curve lies above its average total cost curve,the firm incurs an economic loss at that level of output.

The permanent shut down point of a perfectly competitive firm in the long run is:

If,at the profit-maximizing level of output,a typical perfectly competitive firm's price is greater than its average total cost,the firm should increase output.

Since the beginning of the millennium,the United States has witnessed closure of many Internet start-up companies.According to the model of perfect competition,these companies must have shut down in the short run because:

Since a firm is willing to sell its product at the marginal cost and since the firm receives the market price,the difference between the two is:

The figure given below shows the demand and cost curves of a perfectly competitive firm. Figure: 9.4 D: Demand curve MC: Marginal cost curve ATC: Average-total cost curve AVC: Average-variable-cost curve -Refer to Figure 9.4.The total profit or loss for the firm is:

Under long-run equilibrium in perfect competition,each firm operates at the minimum point of its average-variable-cost curve.

Economics: The World Around You

Choice, opportunity Costs, and Specialization

Markets, Demand and Supply, and the Price System

The Market System and the Private and Public Sector

Elasticity: Demand and Supply

Consumer Choice

Supply: The Costs of Doing Business

Profit Maximization

Monopoly

Monopolistic Competition and Oligopoly

Antitrust and Regulation

Market Failures, Government Failures, and Rent Seeking

Resource Markets

The Labor Market

Capital Markets

The Land Market and Natural Resources

Aging, Social Security and Health Care

Income Distribution,Poverty and Government Policy

World Trade Equilibrium

International Trade Restrictions

Exchange Rates and Financial Links Between Countries

Filters