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Microeconomics Study Set 27

Business

Quiz 9 :

Competitive Markets

Quiz 9 :

Competitive Markets

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Consider the price and quantity data below for a perfectly competitive firm producing mousetraps. img TABLE 9- 1 -Refer to Table 9- 1.Suppose this firm is producing 1500 mousetraps and its average total cost is $5.10 per unit.The firm will be
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Answer:

E

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If a firm in a perfectly competitive market were to raise its price,its
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Answer:

E

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The perfectly elastic demand curve faced by a competitive firm means that
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Answer:

C

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Consider the following short- run cost curves for a profit- maximizing firm in a perfectly competitive industry. img FIGURE 9- 2 -Refer to Figure 9- 2.If the market price is $2,the firm will
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Consider the following cost curves for Firm X,a perfectly competitive firm. img FIGURE 9- 5 -Refer to Figure 9- 5.If Firm X has a capital stock that generates SRATC1,then in the long run Firm X will have to
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If firms in a competitive industry are earning positive economic profits,in the long run we expect
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A perfectly competitive firm's total revenue is equal to which of the following?
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Consider a perfectly competitive firm when its industry is in long- run equilibrium.In this case,
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Refer to Table 9- 1.Suppose this firm is producing 1250 mousetraps and its average total cost is $4 per unit.The firm will be
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Firms have several different concepts of revenue: total revenue,average revenue,marginal revenue,and price.For a profit- maximizing perfectly competitive firm,which statement below is true?
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The short- run supply curve for a perfectly competitive firm is
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On a graph showing a firm's TC and TR curves,the profit- maximizing level of output is found where
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Assume the following total cost schedule for a perfectly competitive firm. img TABLE 9- 2 -Refer to Table 9- 2.If the firm is producing at an output level of 2 units,the ATC is _ and the AVC is _ .
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The theory of perfect competition is built on several assumptions,including that
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Consider the following cost curves for Firm X,a perfectly competitive firm. img FIGURE 9- 5 -Refer to Figure 9- 5.If Firm X is producing output Q1 and the market price is P1,
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Consider a perfectly competitive firm that is producing a level of output such that price equals average total cost and average total cost is less than marginal cost.In order to maximize its profits,the firm should
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Comparing the short- run and long- run profit- maximizing positions of a perfectly competitive firm,which statement is true?
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Consider a perfectly competitive firm in the following position: output = 4000 units,market price = $1,fixed costs = $2000,variable costs = $2000,and marginal cost = $1.To maximize profits the firm should
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Which of the following assumptions about perfectly competitive markets is primarily responsible for the horizontal demand curve facing the individual firm?
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If a perfectly competitive firm is faced with average revenue below average variable cost it will shut down so as to reduce its
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