Question 1

Accounting profit in the long run in perfect competition will be zero.

Accepted Answer

A) True 
 B)False

Question 2

A perfectly competitive firm will not produce any output in the short run and will shut down if price is:

Accepted Answer

A)  greater than marginal cost. 
B)  less than marginal cost. 
C)  less than average variable cost. 
D)  greater than average variable cost and less than average total cost. 
A)  greater than marginal cost. 
B)  less than marginal cost. 
C)  less than average variable cost. 
D)  greater than average variable cost and less than average total cost.

Question 3

If a perfectly competitive firm sells 300 units of output at a market price of $1 per unit, its marginal revenue is:

Accepted Answer

A)  less than $1. 
B)  $1. 
C)  more than $1 but less than $300. 
D)  $300. 
A)  less than $1. 
B)  $1. 
C)  more than $1 but less than $300. 
D)  $300.

Question 4

In the short run, a perfectly competitive firm produces output and earns zero economic profit if:

Accepted Answer

A)  P > ATC. 
B)  P = ATC. 
C)  P  P > ATC. 
A)  P > ATC. 
B)  P = ATC. 
C)  P  P > ATC.

Question 5

The slope of the total cost curve is marginal cost.

Accepted Answer

A) True 
 B)False

Accounting profit in the long run in perfect competition will be zero.

A perfectly competitive firm will not produce any output in the short run and will shut down if price is:

If a perfectly competitive firm sells 300 units of output at a market price of $1 per unit, its marginal revenue is:

In the short run, a perfectly competitive firm produces output and earns zero economic profit if:

The slope of the total cost curve is marginal cost.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters

Exam 9: Competitive Markets for Goods and Services

Accounting profit in the long run in perfect competition will be zero.

A perfectly competitive firm will not produce any output in the short run and will shut down if price is:

If a perfectly competitive firm sells 300 units of output at a market price of $1 per unit, its marginal revenue is:

In the short run, a perfectly competitive firm produces output and earns zero economic profit if:

The slope of the total cost curve is marginal cost.

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

The Economics of the Environment

Inequality, Poverty, and Discrimination

Filters