Quiz
chapter 12 econ
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Fragen in diesem Quiz (28)
1Which of the following is not a characteristic of a perfectly competitive market structure?
- AThere are no restrictions to entry by new firms
- BThere are restrictions on exit of firms.
- CAll firms sell identical products
- DThere are a very large number of firms that are small compared to the market
2Perfect competition is characterized by all of the following except
- Ahomogeneous products
- Bheavy advertising by individual sellers
- Csellers are price takers
- Da horizontal demand curve for individual sellers
3Both individual buyers and sellers in perfect competition
- Acan influence the market price by joining with a few of their competitors
- Bhave to take the market price as a given
- Chave the market price dictated to them by government
- Dcan influence the market price by their own individual actions
4The price of a seller's product in perfect competition is determined by
- Athe individual demander
- Ba few of the sellers
- Cmarket demand and market supply
- Dthe individual seller
5An individual seller in perfect competition will not sell at a price lower than the market price because
- Ademand is perfectly inelastic
- Bthe seller would start a price war
- Cthe seller can sell any quantity she wants at the prevailing market price
- Ddemand for the product will exceed supply.
6The demand curve for each seller's product in perfect competition is horizontal at the market price because
- Aall the sellers get together and set the price
- Ball the demanders get together and set the price
- Ceach seller is too small to affect market price
- D the price is set by the government.
7A perfectly competitive firm has to charge the same price as every other firm in the market. Therefore, the firm
- Afaces a perfectly elastic supply curve
- Bis not able to make a profit in the short run
- Cis a price taker
- Dfaces a perfectly inelastic demand curve
8Which of the following is not an assumption of perfectly competitive markets?
- AThe products sold by all firms in the market are identical.
- BThere are no barriers to new firms entering the market
- CEach firm produces a similar but not identical product
- DThere are many sellers and many buyers, all of which are small relative to the market
9If the market price is $25 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
- A$5
- B$12.50
- C$25
- D$125
10Refer to Figure 12-1. If the firm is producing 700 units
- A it is making a loss
- Bit should cut back its output to maximize profit
- Cit is making a profit
- Dit should increase its output to maximize profit.
11 If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
- Ahas minimized its losses.
- Bis maximizing marginal profit
- Cadded more to total revenue than it added to total cost
- Dadded more to total costs than it added to total revenue
12 If, for a perfectly competitive firm, price exceeds the marginal cost of production, the firm should
- Areduce its output
- Bkeep output constant and enjoy the above normal profit.
- Clower the price
- Dincrease its output.
13Marginal revenue is
- Athe change in total revenue divided by the change in the quantity of output
- Bthe change in profit divided by the change in the quantity of output.
- Ctotal revenue divided by the total quantity of output
- Dthe change in total revenue divided by the change in total cost
14In a graph that illustrates a perfectly competitive firm, marginal revenue is
- Aa diagonal line that lies below the firm's demand curve
- Bthe same as the firm's demand curve
- Ca line that intersects the firm's demand curve from below at its lowest point.
- Da line that intersects the firm's average total cost curve from below at its lowest point.
15Producing where marginal revenue equals marginal cost is equivalent to producing where
- Aaverage total cost equals average revenue
- Baverage fixed cost is minimized
- Ctotal profit is maximized.
- Dtotal revenue is equal to total cost
16Refer to Figure 12-3. Suppose the prevailing price is P1 and the firm is currently producing its loss-minimizing
quantity. Identify the area that represents the loss- AP3cbP1
- BP2 deP1
- CP3caP0
- D0P1 bQ1
17Refer to Figure 12-5. If the market price is $20, what is the firm's profit-maximizing output?
- A750
- B1100
- C1350
- D1800
18Refer to Figure 12-5. If the market price is $20, what is the amount of the firm's profit?
- A5400
- B6750
- C8100
- D16200
19Refer to Figure 12-5. What is the amount of the firm's fixed cost of production?
- A5400
- B6750
- C8100
- Dcant be determined
20Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost
(TC) and average total cost (ATC). Which of the following equations is equal to a firm's profit?- A(P × Q) - (P × ATC)
- BP - TC
- C (P × Q) - TC
- DP - ATC
21If price = marginal cost at the output produced by a perfectly competitive firm and the firm is earning an
economic profit, then- Aaverage total cost is at a minimum.
- Bmarginal revenue is less than price
- Ctotal revenue equals total cost.
- Dprice exceeds average total cost
22Refer to Figure 12-6. Jason is currently producing 20 thousand pounds of apples. To maximize his profit Jason
should- Aincrease production to the output rate indicated by point e
- Bkeep production at 20 thousand pounds
- Cdecrease production to the output rate indicated by point a.
- Dincrease production to the output rate indicated by point d.
23Refer to Figure 12-4. If the market price is $30, the firm's profit-maximizing output level is
- A0
- B130
- C180
- D240
24Refer to Figure 12-4. If the market price is $30 and if the firm is producing output, what is the amount of its total
variable cost?- A$7,200
- B$6,480
- C$5,400
- D$3,960
25Refer to Figure 12-4. If the market price is $30 and the firm is producing output, what is the amount of the
firm's profit or loss?- Aloss of $1,080
- Bprofit of $1,300
- Cprofit of $1,440
- Dloss of $2,520
26Which of the following terms would best describe the price elasticity of demand facing a perfectly competitive
firm?- Aperfectly elastic
- Belastic
- Cinelastic
- Dperfectly inelastic
- Eunit
27Using the schedule above, profit maximization occurs
- Aat the thirteenth unit of production.
- Bat the eighth unit of production
- Cat an output level not shown
- Dat the sixteenth unit of production
28Refer to the above figure. When the price in the market is $4, economic profits will equal
- A100
- B400
- C300
- D200
Informationen
- Beschreibung
- Quiz am chapter 12 econ, erstellt von April Woolley am 08/04/2015.
- Autor
- April Woolley
- Sprache
- English
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- Erstellt am 8 Apr 2015 · aktualisiert am 19 Feb 2016
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