Chapter 10 Smartbook - Assignment Essays

question

Economists group industries into ______ distinct market structures.

answer

four

question

______ is relatively rare in the real world, although this market model is highly ______ to several industries.

answer

Pure competition; relevant

question

Which of the following explains why a purely competitive firm is a price taker?

answer

A purely competitive firm offers only a negligible fraction of total market supply and therefore must accept the price determined by the market.

question

Which factors illustrate that the demand curve for a purely competitive firm is perfectly elastic?

answer

The firm does not need to lower its price to increase its sales volume.
The firm cannot obtain a higher price by restricting its output.

question

In a purely competitive market, price per unit to the purchaser is synonymous with ______ per unit or ______ revenue to a seller.

answer

revenue; average

question

Which of the following are considered to be the four basic market structures?

answer

Monopolistic competition, pure monopoly, pure competition, oligopoly.

question

From an economic standpoint, the break-even point is the level of output at which a firm makes a(n) ______ profit.

answer

normal

question

______ competition is considered to be rare in the real world.

answer

pure

question

In a purely competitive industry, at the profit-maximizing or loss-minimizing level of output, marginal ______ is equal to ______.

answer

revenue; marginal cost
cost; price
revenue; price

question

A purely competitive firm is a price ______.

answer

taker

question

In pure competition, to calculate economic profit, we first calculate the difference between ______ and average total cost and then multiply it by output.

answer

price

question

In a perfectly competitive market, the demand curve for an individual firm is perfectly ______ at the market price.

answer

horizontal

question

This graph illustrates that a firm can minimize its losses by producing where ______.

answer

price exceeds minimum average variable cost but is less than average total cost

question

In a purely competitive market, price per unit to a buyer equals:

answer

average revenue to a seller.

question

A firm should always stop producing if its average ______ cost is ______ price.

answer

variable; greater than

question

Which of the following best describes the economic break-even point?

answer

The point where total revenue covers all costs, but there is no economic profit.

question

True or false: Quantity supplied increases as price decreases, and economic profit is usually higher at lower product prices and output.

answer

False

question

The MR = MC rule is known as the:

answer

profit maximizing rule.

question

Which of the following is a method of calculating economic profit in pure competition?

answer

Price minus average total cost multiplied by quantity

question

Based on the information in this chart, at which price will a firm shut down?

answer

P1.

question

In this table, at a price of $81.00, the loss-minimizing level of output is _____.

answer

6 units

question

Which of the following factors will alter costs and shift the marginal cost or short-run supply curve to a new location?

answer

Prices of variable inputs and technology.

question

In this table, at a price of $71, the profit-maximizing or loss-minimizing level of output is ______.

answer

0 units

question

Total revenue equals ______ times ______.

answer

price; quantity

question

The quantity of a product supplied by a firm in pure competition should _____ as long as price rises.

answer

increase

question

If price is below a firm's minimum average ______ cost, the firm will not operate.

answer

variable

question

Changes in ______ and changes in prices of variable inputs alter costs and shift the marginal cost or short run supply curve.

answer

technology

question

Multiplying product price by output reveals which of the following?

answer

Total revenue.

1 of 28

question

Economists group industries into ______ distinct market structures.

answer

four

question

______ is relatively rare in the real world, although this market model is highly ______ to several industries.

answer

Pure competition; relevant

question

Which of the following explains why a purely competitive firm is a price taker?

answer

A purely competitive firm offers only a negligible fraction of total market supply and therefore must accept the price determined by the market.

question

Which factors illustrate that the demand curve for a purely competitive firm is perfectly elastic?

answer

The firm does not need to lower its price to increase its sales volume.
The firm cannot obtain a higher price by restricting its output.

question

In a purely competitive market, price per unit to the purchaser is synonymous with ______ per unit or ______ revenue to a seller.

answer

revenue; average

question

Which of the following are considered to be the four basic market structures?

answer

Monopolistic competition, pure monopoly, pure competition, oligopoly.

question

From an economic standpoint, the break-even point is the level of output at which a firm makes a(n) ______ profit.

answer

normal

question

______ competition is considered to be rare in the real world.

answer

pure

question

In a purely competitive industry, at the profit-maximizing or loss-minimizing level of output, marginal ______ is equal to ______.

answer

revenue; marginal cost
cost; price
revenue; price

question

A purely competitive firm is a price ______.

answer

taker

question

In pure competition, to calculate economic profit, we first calculate the difference between ______ and average total cost and then multiply it by output.

answer

price

question

In a perfectly competitive market, the demand curve for an individual firm is perfectly ______ at the market price.

answer

horizontal

question

This graph illustrates that a firm can minimize its losses by producing where ______.

answer

price exceeds minimum average variable cost but is less than average total cost

question

In a purely competitive market, price per unit to a buyer equals:

answer

average revenue to a seller.

question

A firm should always stop producing if its average ______ cost is ______ price.

answer

variable; greater than

question

Which of the following best describes the economic break-even point?

answer

The point where total revenue covers all costs, but there is no economic profit.

question

True or false: Quantity supplied increases as price decreases, and economic profit is usually higher at lower product prices and output.

answer

False

question

The MR = MC rule is known as the:

answer

profit maximizing rule.

question

Which of the following is a method of calculating economic profit in pure competition?

answer

Price minus average total cost multiplied by quantity

question

Based on the information in this chart, at which price will a firm shut down?

answer

P1.

question

In this table, at a price of $81.00, the loss-minimizing level of output is _____.

answer

6 units

question

Which of the following factors will alter costs and shift the marginal cost or short-run supply curve to a new location?

answer

Prices of variable inputs and technology.

question

In this table, at a price of $71, the profit-maximizing or loss-minimizing level of output is ______.

answer

0 units

question

Total revenue equals ______ times ______.

answer

price; quantity

question

The quantity of a product supplied by a firm in pure competition should _____ as long as price rises.

answer

increase

question

If price is below a firm's minimum average ______ cost, the firm will not operate.

answer

variable

question

Changes in ______ and changes in prices of variable inputs alter costs and shift the marginal cost or short run supply curve.

answer

technology

question

Multiplying product price by output reveals which of the following?

answer

Total revenue.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order