Chapter 7-10 Microeconomics

in economics, a firm that faces no competition

arises where many firms are competing in a market to sell similar but differentiated products

A firm's ____ consists of expenditures that must be made before production starts that typically, over the short run, ____ regardless of the level of production.

Describes a situation where the quantity of output rises, but the average cost of production fails

the term ____ is synonymous with economies of scale

include all spending on labor, machinery, tools, and supplies purchased from other firms

Approximately what percentage of the U.S. labor force is employed by firms that have fewer than 100 employees

According to the definition of profit, if a profit-maximizing firm will always attempt to produce its desired level of output at the lowest possible cost, then it will

refers to a firm operating in a perfectly competitive market that must take the prevailing market price for its product

refers to additional revenue gained from selling one more unit

If a firm's revenues do not cover its average variable costs, then that firm has reached its

Economic profit can be derived from calculating total revenues minus all of the firm's costs

A perfectly competitive industry is a

The fact that a consumer is not required to buy the goods that a given firm produces, as well as the fact that the consumer might want the goods a firm produces, but may choose to buy from other firms instead

Idaho farmers can sell as large a quantity of their potato crop as they wish,

In the ____, the perfectly competitive firm will react to profits by ____

The perfectly competitive firm, the marginal cost curve is identical to the firm's

If a competitive firm experiences a shift in costs at all levels of output

Which of the following is most unlikely to present a barrier to entry into a market?

A. market forces
B. patent laws
C. technological advantages
D. deregulation

Deregulation occurs when a a government eliminates or scales back rules relating to all but one of the following. What one is it?

Intellectual property law is a body of law that includes

A ____ exists when the quantity demanded in the market is less than than the quantity at the bottom of the long run average cost curve

The use of sharp, temporary price cuts as a form of ____ would enable traditional US automakers to discourage new competition from smaller electric car manufacturers

A firm that holds a monopoly position in the market place

Occasionally, ____ may lead to pure monopoly; in other market conditions, they may limit competition ____

The slope of the demand curve for a monopoly firm is

If monopolists are able to produce fewer goods and sell them at a higher price than they could under perfect competition, the result will be

occurs when circumstances have allowed several large firms to have all or most of the sales in an industry

arises when a firms act to reduce output and keep prices high

refers to a group of firms colluding with one another to produce at the monopoly output and sell at the monopoly price

As the name monopolistic competition implies, a firm's decisions in this setting will in certain ways resemble ____ and in other ways describe ____

What role can advertising play with respect to differentiated products?

Which of the following best identifies what concept of differentiated products is closely related to ?

A. unique style
B. the degree of monopolistic competition that exists
C. optimal location
D. the degree of product variety is available

The shape of the perceived demand curve for a perfectly competitive firm reflects that firm's ability to

A perfectly competitive firm raises its price, the quantity demanded of its product

If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total result is

If one firm operating in an oligopoly raises its price and other firms do not do so