Question 1

In long-run competitive market equilibrium,price equals _______ and economic profit is _______.

Accepted Answer

A)  Minimum average variable cost;greater than zero 
B)  Minimum average total cost;zero 
C)  Maximum marginal cost;zero 
D)  Minimum fixed cost;greater than zero 
A)  Minimum average variable cost;greater than zero 
B)  Minimum average total cost;zero 
C)  Maximum marginal cost;zero 
D)  Minimum fixed cost;greater than zero

Question 2

Competition in markets results in:

Accepted Answer

A)  Economic losses in the long run. 
B)  Guaranteed economic profit. 
C)  The optimal mix of goods and services being produced. 
D)  An undesirable allocation of resources. 
A)  Economic losses in the long run. 
B)  Guaranteed economic profit. 
C)  The optimal mix of goods and services being produced. 
D)  An undesirable allocation of resources.

Question 3

An individual competitive firm:

Accepted Answer

A)  Has a large advertising budget. 
B)  Produces a small portion of output relative to the market. 
C)  Can alter the market price of the good(s)it produces. 
D)  Can raise its price to increase profit. 
A)  Has a large advertising budget. 
B)  Produces a small portion of output relative to the market. 
C)  Can alter the market price of the good(s)it produces. 
D)  Can raise its price to increase profit.

Question 4

Economists assume that the principal motivation of producers is:

Accepted Answer

A)  Profit. 
B)  Competition in society. 
C)  A sense of well-being. 
D)  Individual desires. 
A)  Profit. 
B)  Competition in society. 
C)  A sense of well-being. 
D)  Individual desires.

Question 5

Which of the following is not characteristic of a perfectly competitive market?

Accepted Answer

A)  Firms are price takers 
B)  Brand loyalty 
C)  Low barriers to entry 
D)  Many firms 
A)  Firms are price takers 
B)  Brand loyalty 
C)  Low barriers to entry 
D)  Many firms

Question 6

Which of the following is characteristic of a perfectly competitive market?

Accepted Answer

A)  Firms are price setters 
B)  A few firms dominate the market 
C)  There are low barriers to entry 
D)  The market demand curve is flat 
A)  Firms are price setters 
B)  A few firms dominate the market 
C)  There are low barriers to entry 
D)  The market demand curve is flat

In long-run competitive market equilibrium,price equals _ and economic profit is _.

Competition in markets results in:

An individual competitive firm:

Economists assume that the principal motivation of producers is:

Which of the following is not characteristic of a perfectly competitive market?

Which of the following is characteristic of a perfectly competitive market?

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

Exam 6: Competition

In long-run competitive market equilibrium,price equals _______ and economic profit is _______.

Competition in markets results in:

An individual competitive firm:

Economists assume that the principal motivation of producers is:

Which of the following is not characteristic of a perfectly competitive market?

Which of the following is characteristic of a perfectly competitive market?

The Challenge of Economics

The US Economy

Supply and Demand

Consumer Demand

Supply Decisions

Monopoly

The Labor Market

Government Intervention

The Business Cycle

Aggregate Supply and Demand

Fiscal Policy

Money and Banks

Monetary Policy

Economic Growth

Theory and Reality

International Trade

Filters

In long-run competitive market equilibrium,price equals _ and economic profit is _.