1. A firm produces at that output at which marginal cost = marginal revenue: (Points: 5) all of the
time. most of the time. some of the time. on rare occasions. 2. Which statement
is true? (Points: 5) The marginal cost curve is used to determine if a firm is
operating at peak efficiency. A firm will always try to maximize its total
revenue. A firm's long-run supply curve is identical to its entire marginal cost
curve. A firm is operating most efficiently when it is at its break-even point.
3. Which statement is true? (Points: 5) Price is calculated by dividing output
by total revenue. The lowest point on the short-run supply curve is at the
break-even point. When price exceeds marginal cost, a profit-maximizing firm
will decrease production. The marginal cost curve intersects the average total
cost curve at the break-even point 4. To find the output at which the firm maximizes its profits you must know the
firm's: (Points: 5) ATC. AVC. AFC. MC. 5. The monopolist and the perfect
competitor differ in that: (Points: 5) they face different demand curves. the
monopolist does not always produce at an output in which MC = MR. the monopolist
is always a large firm. the monopolist is more efficient. 6. Which statement is
true? (Points: 5) The monopolist operates at the minimum point of her average
total cost curve. Once a monopoly is set up, it is impossible to dislodge it.
Monopolies are always large firms. Price is always read off the demand curve. 7.
Which statement is true? (Points: 5) All monopolists' products have close
substitutes. Most firms in the United States are monopolies. There are no
monopolies in the United States. A monopoly is a firm that produces all the
output in an industry. 8. The monopolist is a(n): (Points: 5) imperfect
competitor and has a horizontal demand curve. imperfect competitor and has a
downward-sloping demand curve. perfect competitor and has a horizontal demand
curve. perfect competitor and has a downward-sloping demand curve. 9. Price is
always read off the __________ curve. (Points: 5) MC MR ATC demand 10. The most
efficient output is found: (Points: 5) where MC and MR cross. at the bottom of
the ATC curve. when the demand and MR curves are equal. where the ATC and demand
curves cross. 11. The basis for monopolistic competition is: (Points: 5) product
differentiation. price. economies of scale. reaching a break-even point. 12.
__________ is (are) legal in the United States. (Points: 5) Convert collusion
Cut throat competition Cartels Price fixing 13. A Herfindahl-Hirschman Index of
10,000 would mean there is (are) how many firm(s) in the industry? (Points: 5) 1
10 100 1000 14. The least competitive industry would be one that has: (Points:
5) price leadership. covert collusion. overt collusion. a cartel. 15. Which
statement is true? (Points: 5) The monopolistic competitor always makes a profit
in the short run. The monopolistic competitor operates at peak efficiency.
Product differentiation takes place in the minds of the buyers. Most consumers
would prefer lower prices and less product differentiation. 16. Monopolistic
competition differs from perfect competition only with respect to: (Points: 5)
the number of firms in the industry. product differentiation. barriers to entry.
economies of scale. 17. In the long run in monopolistic competition: (Points: 5)
most firms are making a profit. the absence of entry barriers ensures that there
are no profits. economies of scale ensure that there are no profits. most firms
are losing money. 18. Which statement is true? (Points: 5) Most firms in the
United States are monopolistic competitors. Most firms in the United States are
perfect competitors. Most consumers would prefer lower prices and less product
differentiation. The monopolistic competitor always makes a profit in the short
run. 19. The closer the industry concentration ratio is to 100, the more likely
it is that: (Points: 5) there are a reasonably large number of medium-sized
firms. this is an industry approaching perfect competition. there is a small
number of large firms. price competition is being practiced. 20. Which is the
least competitive? (Points: 5) Overt collusion Covert collusion Price leadership
All are equally competitive
time. most of the time. some of the time. on rare occasions. 2. Which statement
is true? (Points: 5) The marginal cost curve is used to determine if a firm is
operating at peak efficiency. A firm will always try to maximize its total
revenue. A firm's long-run supply curve is identical to its entire marginal cost
curve. A firm is operating most efficiently when it is at its break-even point.
3. Which statement is true? (Points: 5) Price is calculated by dividing output
by total revenue. The lowest point on the short-run supply curve is at the
break-even point. When price exceeds marginal cost, a profit-maximizing firm
will decrease production. The marginal cost curve intersects the average total
cost curve at the break-even point 4. To find the output at which the firm maximizes its profits you must know the
firm's: (Points: 5) ATC. AVC. AFC. MC. 5. The monopolist and the perfect
competitor differ in that: (Points: 5) they face different demand curves. the
monopolist does not always produce at an output in which MC = MR. the monopolist
is always a large firm. the monopolist is more efficient. 6. Which statement is
true? (Points: 5) The monopolist operates at the minimum point of her average
total cost curve. Once a monopoly is set up, it is impossible to dislodge it.
Monopolies are always large firms. Price is always read off the demand curve. 7.
Which statement is true? (Points: 5) All monopolists' products have close
substitutes. Most firms in the United States are monopolies. There are no
monopolies in the United States. A monopoly is a firm that produces all the
output in an industry. 8. The monopolist is a(n): (Points: 5) imperfect
competitor and has a horizontal demand curve. imperfect competitor and has a
downward-sloping demand curve. perfect competitor and has a horizontal demand
curve. perfect competitor and has a downward-sloping demand curve. 9. Price is
always read off the __________ curve. (Points: 5) MC MR ATC demand 10. The most
efficient output is found: (Points: 5) where MC and MR cross. at the bottom of
the ATC curve. when the demand and MR curves are equal. where the ATC and demand
curves cross. 11. The basis for monopolistic competition is: (Points: 5) product
differentiation. price. economies of scale. reaching a break-even point. 12.
__________ is (are) legal in the United States. (Points: 5) Convert collusion
Cut throat competition Cartels Price fixing 13. A Herfindahl-Hirschman Index of
10,000 would mean there is (are) how many firm(s) in the industry? (Points: 5) 1
10 100 1000 14. The least competitive industry would be one that has: (Points:
5) price leadership. covert collusion. overt collusion. a cartel. 15. Which
statement is true? (Points: 5) The monopolistic competitor always makes a profit
in the short run. The monopolistic competitor operates at peak efficiency.
Product differentiation takes place in the minds of the buyers. Most consumers
would prefer lower prices and less product differentiation. 16. Monopolistic
competition differs from perfect competition only with respect to: (Points: 5)
the number of firms in the industry. product differentiation. barriers to entry.
economies of scale. 17. In the long run in monopolistic competition: (Points: 5)
most firms are making a profit. the absence of entry barriers ensures that there
are no profits. economies of scale ensure that there are no profits. most firms
are losing money. 18. Which statement is true? (Points: 5) Most firms in the
United States are monopolistic competitors. Most firms in the United States are
perfect competitors. Most consumers would prefer lower prices and less product
differentiation. The monopolistic competitor always makes a profit in the short
run. 19. The closer the industry concentration ratio is to 100, the more likely
it is that: (Points: 5) there are a reasonably large number of medium-sized
firms. this is an industry approaching perfect competition. there is a small
number of large firms. price competition is being practiced. 20. Which is the
least competitive? (Points: 5) Overt collusion Covert collusion Price leadership
All are equally competitive
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