Under perfectly competitive conditions-marginal revenue

Assignment Help Business Economics
Reference no: EM13819152

1. Under perfectly competitive conditions, marginal revenue is

a. greater than average revenue

b. equal to average revenue

c. less than average revenue

d. equal to the average variable

2. A firm's break-even point occurs where

 a. marginal revenue equals marginal cost

 b. marginal revenue equals average variable cost

c. total revenue equals total cost

d. total revenue equals total variable cost

3. The addition to total output resulting from using one more unit of a productive resource is the

a. average product

b. marginal input

c. total product

d. marginal product

4. Unlike a firm in pure competition, a monopolist may be able to

a. block the entry of new firms into the industry

b. continue to earn economic profits in the long run

c. earn economic profits in the short run

d. both (a) and (b)

5. Producer surplus is the difference between the price the firm is willing to sell its goods and the price it actually receives.

a. true

b. false

6. In the long run, under conditions of perfect competition, market forces come into play to

a. enhance profits

b. increase demand

c. eliminate profits

d. separate MR and AR

7. Consumer surplus is the area above the demand curve and below the equilibrium price.

 a. true

b. false

8. Under perfect competition, market price is determined by market demand and supply.

a. true

b. false

9. The more that firms advertise, the closer they get to perfect competition.

a. true

b. false

10. Perfect competition assumes that a producer is interested in maximizing profit.

a. true

b. false

11. In the long run, under conditions of perfect competition, the buyer will eventually be able to buy the product at a

a. price equal to the lowest point on the ATC curve past the optimal scale of operation

b. price below cost

c. price equal to the lowest point on the ATC curve at the optimal scale of operation

d. discount

12. The lowest possible ATC curve is attained at the optimal scale of output.

a. true

b. false

13. Perfect competition assumes that all products are identical and that no advertising exists.

a. true

b. false

14. The demand curve for the output of a perfectly competitive firm is

a. perfectly inelastic

b. perfectly elastic

c. a rectangular hyperbola with an elasticity equal to 1

d. identical in shape to the market demand curve

15. If a firm is producing an output level for which the market price exceeds the firm's marginal cost,

a. consumers would be willing only to pay a price lower than what it costs the firm to produce another unit

b. consumers would be willing only to pay a price equal to what it costs the firm to produce another unit

c. consumers would be willing to pay a price greater than what it costs the firm to produce another unit

d. consumers would be willing only to pay a price equal to or lower than what it costs the firm to produce another unit

16. Under conditions of perfect competition, if losses occur in an industry, market forces may come into play to

a. reduce supply

b. lower average revenue

c. increase supply

d. attract new firms

17. An administered price is a price

a. set by overall demand and supply

b. established by a seller

c. set by the government

d. determined through collective bargaining

Reference no: EM13819152

Questions Cloud

Government provides every citizen a hula-hoop : If the government provides every citizen a hula-hoop then it follows that in economic terms:
The gini coefficient falls : If the gini coefficient falls from .40 to .20
Income distribution data for taxes and transfer payments : In general, correcting income distribution data for taxes and transfer payments results in:
These makes the most economic sense : Assume there are 1000 homes in a flood zone in an area in which sea levels are rising. An additional 1000 homes are above the flood zone and at less risk. A levee could be built to prevent the rise in sea level from affecting the homes. It is worth $..
Under perfectly competitive conditions-marginal revenue : Under perfectly competitive conditions, marginal revenue is. A firm's break-even point occurs where. Consumer surplus is the area above the demand curve and below the equilibrium price. Perfect competition assumes that all products are identical and ..
Absolute advantage determines trade specialization : International trade benefits both partners, though not necessarily all citizens. Absolute advantage determines trade specialization. Tariffs are generally preferred by economists over quotas. The U.S. has a large trade deficit with China, although it..
Encourage consumption of indoor sprinkler systems : A sprinkler system inside of one house does not protect houses on the other side of town. It also requires the homeowner to purchase and install it prior to benefiting from it. Once installed it can help stop fires from jumping to neighboring homes.
Regarding their strategies to alleviate inflation : Participate in a discussion with your classmates regarding how monetary policies affect our lives. Utilizing the knowledge that you have accumulated during our course, and by reading or watching the current news, Specifically, discuss whether the gre..

Reviews

Write a Review

 

Business Economics Questions & Answers

  How much can you withdraw each month from your account

When you retire, you will combine your money into an account with a 9 percent return. How much can you withdraw each month from your account assuming a 25-year withdrawal period.

  Find the firms marginal rate of technical substitution

A firm uses labor and capital to produce output according to the production function q=100KL, where L is the number of units of labor used and K is the number of machines. What is the marginal product of labor. What is the marginal product of capital..

  A basic theory of underlying macroeconomic behavior

A basic theory of underlying macroeconomic behavior and therefore useful for making policy predictions. Briefly explain.

  Miller and coors who together produce what

Miller and Coors who together produce 85% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.

  Illustrate what is the firm current profit

Illustrate what is the firm's current profit. Illustrate what is likely to occur in this market.

  Substitute is new car if income

What will happen to price of old car taken as an inferior goods whose substitute is new car if income of the people rises.

  Show the changes in the equilibrium price and quantity

calculated the price to be $7 and quant to be 5 on first part. After, I thought the price would be $7.67. Is this correct? and if not, please explain.  show the changes in the equilibrium price and quantity.

  Can you think of any financial innovation in the past ten

can you think of any financial innovation in the past ten years that has affected you personally? has it made you

  Qairjet best parts inc would like to issue 20-year bonds to

q.airjet best parts inc. would like to issue 20-year bonds to obtain remaining funds for the new mexico plant. the

  Calculate the changes in consumer and producer surplus

In June 2008, the U.S. retail gas price jumped from $3 to $4 a gallon. This is a 33% increase in price from January 2008. During that time, the total quantity of gasoline purchased fell by 3%. Supplies of gasoline produced also decreased from one mil..

  Find walmarts total labor cost and marginal cost

Assume that Wal-mart is the only employer of retail workers in a small town in Indiana. As a local non-discriminating monopsonist, Wal-mart faces a labor supply curve given by: Find Wal-Mart’s Total Labor Cost and Marginal Cost.

  Find the marginal cost the average cost function

For each of the cost functions found in part I, find the marginal cost, the average cost function and the average variable cost function.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd