question
Assume the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market:
answer
the supply curve will shift to the left, the demand curve will shift to the left, and the equilibrium price will increase
question
If the mart price is $25, the marginal revenue of selling 5 units is
answer
$25
question
If a perfectly competitive firm's price is above its average total cost, the firm
answer
is earning a profit
question
If, for a given level of output, a perfectly competitve firm's price is less than its average variable cost, the firm
answer
should shut down
question
The key characteristics of a monopolistically competitive market structure include
answer
many small (relativ to the total market) sellers acting independently
question
What is the profit-maximizing rule for a monopolistically competitive firm?
answer
to produce a quantity such that marginal revenue equals marginal cost
question
A monopolistically competitive firm that is earning profits will, in the long run, experience all of the following except
answer
a decrease in the number of rival products
question
Long Run Equilibrium: A firm in monopolistic competition does not take full advantage of its _______ but a firm in perfect competition produces at the _____ average cost possible
answer
economies of scale; lowest
question
If buyers of a monopolistically competitive product feel the products different sellers are strongly differentiated, then the demand for each seller's product is
answer
relatively inelastic
question
An oligopoly firm is similar to a monopolistically competitive firm in that
answer
both firms have market power
question
As word processing on personal computers expanded, sales of typerwriters began to dissapear. Which of Porter's competitive forces does this event demonstrate?
answer
competition among substitute goods or services
question
The reason that the Fisherman's Friend restaurant in Stonington, Maine had a monopoly on selling seafood dinners in that town is most likely due to
answer
no competitors apparently found the profit level attractive enough to enter the market
question
A United States government patent lasts
answer
20 years
question
If a theatre company expects $250,000 in ticket revenue from five performances and $288,000 in ticket revenue if it adds a sixth performance, the
answer
marginal revenue of the sixth performance is $38,000
question
Economic efficiency in a free market occurs when
answer
the sum of consumer surplus and producer surplus is maximized
question
The Clayton Act prohibited
answer
any merger if its effect was to substantially lessen competition or create a monopoly
question
Price discrimination
answer
is the practice of charging different prices to different customers when the price differences cannot be attributed to variations in cost
question
If a firm charges different consumers different prices for the same product and the difference cannot be attributed to cost variations, then it is engaging in
answer
price discrimination
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
