question
3- Perfectly competitive firms are sometimes called price makers because they have significant control over product price.
A. TRUE
B. FALSE
A. TRUE
B. FALSE
answer
B
question
Firms in a perfectly competitive market achieve both allocative and productive efficiency in the short run.
A. TRUE B. FALSE
A. TRUE B. FALSE
answer
B
question
2- For a perfectly competitive firm, price is identical to marginal revenue at every quantity.
A. TRUE
B. FALSE
A. TRUE
B. FALSE
answer
A
question
4- Consumers benefit from market exchange when the maximum price they are willing to pay for a unit of a good is less than what they usually pay.
A. TRUE
B. FALSE
A. TRUE
B. FALSE
answer
B
question
5- In a perfectly competitive market, what can one farmer do to change the market price?
answer
E The firm cannot change the market price.
question
6- Perfectly competitive firms will leave the industry that they are operating in if they _____
answer
are unable to cover their variable costs.
question
7- If Harry's Blueberries, a perfectly competitive firm, shuts down in the short run, Harry must pay _____
answer
E. only the fixed cost of production.
question
8- To achieve allocative efficiency, firms _____
answer
E. produce the output consumers value most.
question
9- In the short run, a firm will produce a positive amount of output as long as _____
answer
A. price exceeds average variable cost.
question
10- For a perfectly competitive firm, ____
answer
A. price equals marginal revenue at all output levels.
question
11- Which of the following firms is most likely to be a perfectly competitive firm?
answer
D. a farm that grows soybeans
question
12- A perfectly competitive firm is currently producing at a point where price is $10 and both marginal cost and average variable cost are $7. To maximize profit or minimize loss in the short run, this firm should _____
answer
B. increase its output.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
