Chương 14

1. 11. A perfectly competitive firm
   a. chooses its price to maximize profits.
   b. sets its price to undercut other firms selling similar
   products.
   c. takes its price as given by market conditions.
   d. picks the price that yields the largest market share.
   
   

   1. Aa
   2. Bb
   3. Cc
   4. Dd
2. 22. A competitive firm maximizes profit by choosing the
   quantity at which
   a. average total cost is at its minimum.
   b. marginal cost equals the price.
   c. average total cost equals the price.
   d. marginal cost equals average total cost.
   
   

   1. Aa
   2. Bb
   3. Cc
   4. Dd
3. 33. A competitive firm’s short-run supply curve is its
   ________ cost curve above its ________ cost curve.
   a. average total, marginal
   b. average variable, marginal
   c. marginal, average total
   d. marginal, average variable
   

   1. Aa
   2. Bb
   3. Cc
   4. Dd
4. 44. If a profit-maximizing, competitive firm is producing
   a quantity at which marginal cost is between average
   variable cost and average total cost, it will
   a. keep producing in the short run but exit the market
   in the long run.
   b. shut down in the short run but return to production
   in the long run.
   c. shut down in the short run and exit the market in
   the long run.
   d. keep producing both in the short run and in the
   long run.
   

   1. Aa
   2. Bb
   3. Cc
   4. Dd
5. 55. In the long-run equilibrium of a competitive market
   with identical firms, what are the relationships
   among price P, marginal cost MC, and average total
   cost ATC?
   a. P . MC and P . ATC.
   b. P . MC and P 5 ATC.
   c. P 5 MC and P . ATC.
   d. P 5 MC and P 5 ATC.
   

   1. Aa
   2. Bb
   3. Cc
   4. Dd
6. 66. Pretzel stands in New York City are a perfectly
   competitive industry in long-run equilibrium. One day,
   the city starts imposing a $100 per month tax on
   each stand. How does this policy affect the number of
   pretzels consumed in the short run and the long run?
   a. down in the short run, no change in the long run
   b. up in the short run, no change in the long run
   c. no change in the short run, down in the long run
   d. no change in the short run, up in the long run
   

   1. Aa
   2. Bb
   3. Cc
   4. Dd

Description

Quiz on Chương 14, created by Nguyen Thi My Huong B2306994 on 17/11/2024.

Author

Nguyen Thi My Huong B2306994

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English

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chương 1

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