Question 1

Price taking behavior exists in

Accepted Answer

A)  perfectly competitive markets. 
B)  markets with a monopolist, where consumers have to take price as it is given to them by the monopolist. 
C)  automobile markets where consumers have to take the price set by the dealer. 
D)  Both answers B and C are correct. 
A)  perfectly competitive markets. 
B)  markets with a monopolist, where consumers have to take price as it is given to them by the monopolist. 
C)  automobile markets where consumers have to take the price set by the dealer. 
D)  Both answers B and C are correct.

Question 2

What are the requirements for perfect competition?

Accepted Answer

The requirements are: many firms selling

Question 3

The firm's supply curve is its

Accepted Answer

A)  marginal cost curve, at all points above the minimum average variable cost curve. 
B)  marginal cost curve, at all points above the minimum average fixed cost curve. 
C)  marginal cost curve, at all points above the minimum average total cost curve. 
D)  marginal revenue curve, at all points above the minimum average total cost curve. 
A)  marginal cost curve, at all points above the minimum average variable cost curve. 
B)  marginal cost curve, at all points above the minimum average fixed cost curve. 
C)  marginal cost curve, at all points above the minimum average total cost curve. 
D)  marginal revenue curve, at all points above the minimum average total cost curve.

Question 4

-Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip

Accepted Answer

A)  makes an economic profit and should stay open in the short run. 
B)  makes an economic profit, but should shut down in the short run. 
C)  incurs an economic loss, but should stay open in the short run. 
D)  incurs an economic loss and should shut down in the short run. 
A)  makes an economic profit and should stay open in the short run. 
B)  makes an economic profit, but should shut down in the short run. 
C)  incurs an economic loss, but should stay open in the short run. 
D)  incurs an economic loss and should shut down in the short run.

Question 5

-The above table gives the quantity of output and the total cost for a perfectly competitive firm that can sell all of its output at $9 per unit.
a) Find the profit maximizing level of output for this firm.
b) How much economic profit is the firm making?

Accepted Answer

@#IMG-DLM& a) Total revenue equals price times qua

Question 6

-In the above figure, the firm will produce

Accepted Answer

A)  0 units. 
B)  5 units. 
C)  15 units. 
D)  20 units. 
A)  0 units. 
B)  5 units. 
C)  15 units. 
D)  20 units.

Question 7

The section of the marginal cost curve that lies above the average variable cost curve is

Accepted Answer

A)  a perfectly competitive firm's supply curve. 
B)  a perfectly competitive firm's average total cost curve. 
C)  a perfectly competitive firm's total fixed costs curve. 
D)  irrelevant to the firm because it never produces at any point along this curve. 
A)  a perfectly competitive firm's supply curve. 
B)  a perfectly competitive firm's average total cost curve. 
C)  a perfectly competitive firm's total fixed costs curve. 
D)  irrelevant to the firm because it never produces at any point along this curve.

Price taking behavior exists in

What are the requirements for perfect competition?

The firm's supply curve is its

-Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip

-The above table gives the quantity of output and the total cost for a perfectly competitive firm that can sell all of its output at $9 per unit. a) Find the profit maximizing level of output for this firm. b) How much economic profit is the firm making?

-In the above figure, the firm will produce

The section of the marginal cost curve that lies above the average variable cost curve is

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

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Exam 12: Perfect Competition

Price taking behavior exists in

What are the requirements for perfect competition?

The firm's supply curve is its

-Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip

-The above table gives the quantity of output and the total cost for a perfectly competitive firm that can sell all of its output at $9 per unit. a) Find the profit maximizing level of output for this firm. b) How much economic profit is the firm making?

-In the above figure, the firm will produce

The section of the marginal cost curve that lies above the average variable cost curve is

What Is Economics

The Economic Problem

Demand and Supply

Elasticity

Efficiency and Equity

Government Actions in Markets

Global Markets in Action

Utility and Demand

Possibilities, Preferences, and Choices

Organizing Production

Output and Costs

Monopoly

Monopolistic Competition

Oligopoly

Public Choices, Public Goods, and Healthcare

Externalities

Markets for Factors of Production

Economic Inequality

Uncertainty and Information

Filters