question
(CHAPTER 10 Pure comp. in the short run)
An industry comprising a very large number of sellers producing a standardized product is known as
A. monopolisitic competition
B. oligopioloy
C. pure monopoly
D. pure competition
An industry comprising a very large number of sellers producing a standardized product is known as
A. monopolisitic competition
B. oligopioloy
C. pure monopoly
D. pure competition
answer
D. pure competition
question
(CHAPTER 10 Pure comp. in the short run)
In anwsering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. For a purely competitive firm,
A. marginal revenue will graph as an upsloping line
B. the demand curve will lie above the demand curve.
C. the marginal revenue curve will lie above the demand curve
D. the demand and marginal revenue curves will coincide.
In anwsering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. For a purely competitive firm,
A. marginal revenue will graph as an upsloping line
B. the demand curve will lie above the demand curve.
C. the marginal revenue curve will lie above the demand curve
D. the demand and marginal revenue curves will coincide.
answer
D. the demand and marginal revenue curves will coincide
question
(CHAPTER 10 Pure comp. in the short run)
Marginal Revenue is the
A. change in product price associated with the sale of one more unit of output
B. change in average revenue associated with the sale of one more unit of output
C. difference between product price and average total cost
D. change in total revenue associated with the sale of one more unit of output
Marginal Revenue is the
A. change in product price associated with the sale of one more unit of output
B. change in average revenue associated with the sale of one more unit of output
C. difference between product price and average total cost
D. change in total revenue associated with the sale of one more unit of output
answer
D. change in total revenue associated with the sale of one more unit of output.
question
(CHAPTER 10 Pure comp. in the short run)
For a purley competitive seller, price equals
A. average revenue
B. marginal revenue
C. total revenue divided by output
D. all of these
For a purley competitive seller, price equals
A. average revenue
B. marginal revenue
C. total revenue divided by output
D. all of these
answer
D. all of these
question
(CHAPTER 10 Pure comp. in the short run)
In the short run, a purley competitive firm that seeks to maximize profit will produce
A. where the demand and the ATC curves intersect
B. where total revenue exceeds total cost by the maximum amount.
C. that output at which economic profits are zero
D. at any point where the total revenue and total cost curves intersect.
In the short run, a purley competitive firm that seeks to maximize profit will produce
A. where the demand and the ATC curves intersect
B. where total revenue exceeds total cost by the maximum amount.
C. that output at which economic profits are zero
D. at any point where the total revenue and total cost curves intersect.
answer
D. at any point where the total revenue and total cost curves intersect
question
(CHAPTER 10 Pure comp. in the short run)
A firm reaches a break-even point (normal profit position) where
A. marginal revenue cuts the horizontal axis
B. marginal cost intersects the average variable cost curve
C. total revenue equals total variable cost.
D. total revenue and total cost are equal
A firm reaches a break-even point (normal profit position) where
A. marginal revenue cuts the horizontal axis
B. marginal cost intersects the average variable cost curve
C. total revenue equals total variable cost.
D. total revenue and total cost are equal
answer
D. total revenue and total cost are equal.
question
(CHAPTER 10 pure comp. in the short run)
A frim finds that its MR=MC output, its TC=$1,000, TVC=$800, TFC=$200, and total revenue is $900. The firm should
A. shut down in the short run
B. produce because the resulting loss is less than its TFC
C. produce because it will realize and economic proft
D. liquidate its assets and go out of business
A frim finds that its MR=MC output, its TC=$1,000, TVC=$800, TFC=$200, and total revenue is $900. The firm should
A. shut down in the short run
B. produce because the resulting loss is less than its TFC
C. produce because it will realize and economic proft
D. liquidate its assets and go out of business
answer
B. produce because the resulting loss is less than its TFC
question
(CHAPTER 10 pure comp. in the short run)
The short-run supply curve of a purley competitve producer is based primparily on its
A. AVC curve
B. ATC curve
C. AFC curve
D. MC curve
The short-run supply curve of a purley competitve producer is based primparily on its
A. AVC curve
B. ATC curve
C. AFC curve
D. MC curve
answer
D. MC curve
question
(CHAPTER 10 pure comp. in the short run)
On a per-unit basis, economic profit can be determined as the difference between
A. marginal revenue and product price
B. product price and average total cost
C. marginal revenue and marginal cost
D. average fixed cost and product price
On a per-unit basis, economic profit can be determined as the difference between
A. marginal revenue and product price
B. product price and average total cost
C. marginal revenue and marginal cost
D. average fixed cost and product price
answer
B. product price and average total cost
question
(CHAPTER 10 pure comp. in the short run)
In the short run, a purely competitive seller will shut down if the product price
A. equals average revenue
B. is greater than MC
C. is less than AVC
D. is less than ATC
In the short run, a purely competitive seller will shut down if the product price
A. equals average revenue
B. is greater than MC
C. is less than AVC
D. is less than ATC
answer
C. is less than AVC
question
(CHAPTER 10 pure comp. in the short run)
The Ajax Manufacturing Company is selling in a purley competitve market. Its output is 100units, which sells at $4 each. At this level of output, total cost is $600, total fixed cost is $100, and marginal cost is $4. The firm should
A. reduce output to about 80 units
B. expand its production
C. continue to produce 100 units
D. produce zero units of output
The Ajax Manufacturing Company is selling in a purley competitve market. Its output is 100units, which sells at $4 each. At this level of output, total cost is $600, total fixed cost is $100, and marginal cost is $4. The firm should
A. reduce output to about 80 units
B. expand its production
C. continue to produce 100 units
D. produce zero units of output
answer
D. produce zero units of output
question
(CHAPTER 10 pure comp. in the short run)
In the short run, a purely competitive firm will earn a normal profit when
A. P=AVC
B. P> MC
C. that firm's MR=market equilibrium price
D. P=ATC
In the short run, a purely competitive firm will earn a normal profit when
A. P=AVC
B. P> MC
C. that firm's MR=market equilibrium price
D. P=ATC
answer
D. P=ATC
question
(CHAPTER 12 Pure monopoly)
Which of the following is correct?
A. Both purley competitive and monopolist firms are "price takers"
B. Both purley competitive and monopolistic firms are "price makers"
C. a purley competitive firm is a "price taker" while a monopolist is a "price maker"
D. a purley competitve firm is a "price maker" while a monopolist is a "price taker"
Which of the following is correct?
A. Both purley competitive and monopolist firms are "price takers"
B. Both purley competitive and monopolistic firms are "price makers"
C. a purley competitive firm is a "price taker" while a monopolist is a "price maker"
D. a purley competitve firm is a "price maker" while a monopolist is a "price taker"
answer
C. a purely competitive firm is a price taker and a monoploist is a price maker
question
(CHAPTER 10 pure monopoly)
Pure monopolists may obtain economic profits in the long run because
A. advertising
B. marginal reveue is constant as sales increase
C. barriers to entry
D. of rising average fixed costs
Pure monopolists may obtain economic profits in the long run because
A. advertising
B. marginal reveue is constant as sales increase
C. barriers to entry
D. of rising average fixed costs
answer
C. barriers to entry
question
(CHAPTER 12 pure monopoly)
A monopolistic firm has a sales schedule such that it can sell 10 prefrbricated garaged per week at $10,000, each, but if it restricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the 10th unit of sales per week is
A. -1,000
B.9,000
C.10,000
D.1,000
A monopolistic firm has a sales schedule such that it can sell 10 prefrbricated garaged per week at $10,000, each, but if it restricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the 10th unit of sales per week is
A. -1,000
B.9,000
C.10,000
D.1,000
answer
D. 1,000
question
(CHAPTER 12 pure monopoly)
The marginal revenue curve for a monopolist
A. is a stright, upsloping curve.
B. rises at first, reaches a maximum, and then declines
C. becomes negative when output increases beyond some particular level
D. is a straight line, parallel to the horizontal axis.
The marginal revenue curve for a monopolist
A. is a stright, upsloping curve.
B. rises at first, reaches a maximum, and then declines
C. becomes negative when output increases beyond some particular level
D. is a straight line, parallel to the horizontal axis.
answer
C. becomes negative when output increases beyond some particular level
question
(CHAPTER 12 pure monopoly)
An unregulated pure monopolist will maximize profits by producing that output at which
A. P=MC
B. P= ATC
C. MR=MC
D. MC=AC
An unregulated pure monopolist will maximize profits by producing that output at which
A. P=MC
B. P= ATC
C. MR=MC
D. MC=AC
answer
C. MR=MC
question
(CHAPTER 12 pure monopoly)
When a pure monopolist is producing its profit-maximizing output, price will
A. be less than MR
B. equal neither MC or MR
C. equal MR
D. equal MC
When a pure monopolist is producing its profit-maximizing output, price will
A. be less than MR
B. equal neither MC or MR
C. equal MR
D. equal MC
answer
B. equal neither MC nor MR
question
(CHAPTER 12 pure monopoly)
If the variable costs of a profit-maximizing pure monoplost decline, the firm should
A. produce more output and charge a higer price
B. produce more output and charge a lower price
C. reduce both output and price
D. raise both output and price
If the variable costs of a profit-maximizing pure monoplost decline, the firm should
A. produce more output and charge a higer price
B. produce more output and charge a lower price
C. reduce both output and price
D. raise both output and price
answer
B. produce more output and charge a lower price
question
(chapter 12 pure monopoly)
Confronted with the same cost unit date, a monopolistic producer will charge
A. the same price and produce the same output as a competitive firm
B. a higher price and produce a larger output than a competitive firm
C. a higher price and produce a smaller output than a competitve firm
D. a lower price and produce a smaller output than a competitive firm
Confronted with the same cost unit date, a monopolistic producer will charge
A. the same price and produce the same output as a competitive firm
B. a higher price and produce a larger output than a competitive firm
C. a higher price and produce a smaller output than a competitve firm
D. a lower price and produce a smaller output than a competitive firm
answer
C. a higher price and produce a smaller output than a competitve firm
question
(chapter 12 pure monopoly)
A single-price monopoly is economically ineficcient because, at the profit-maximizing output
A. marginal revenue exceeds product price at all profitible levels of production
B. monopolists always price their products ont he basis of the ability of the consumers to pay rather than on the cost of production.
C. MC>P
D. society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.
A single-price monopoly is economically ineficcient because, at the profit-maximizing output
A. marginal revenue exceeds product price at all profitible levels of production
B. monopolists always price their products ont he basis of the ability of the consumers to pay rather than on the cost of production.
C. MC>P
D. society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.
answer
D. society values additional units of the monopolized product more highly than it does the alternative products those resources could otherwise produce.
question
(chapter 12 pure monopoly)
Price disrcimination refers to
A. selling a given product for different prices at two different points in time
B. any price above that whuch is equal to a mimiu, average total cost.
C. the selling of a given product to different customers at different prices that do not reflect cost differences.
D. the difference between the prices a purley competitve seller and a purley monopolisitc seller would charge
Price disrcimination refers to
A. selling a given product for different prices at two different points in time
B. any price above that whuch is equal to a mimiu, average total cost.
C. the selling of a given product to different customers at different prices that do not reflect cost differences.
D. the difference between the prices a purley competitve seller and a purley monopolisitc seller would charge
answer
C. selling of a given product to different customers at different prices that do not reflect cost differences.
question
(chapter 12 pure monopoly)
If a monopolist engages in price discrimination it will
A. realize a smaller profit
B. charger a higher price where individual demand in inelastic and a lower price where individual demand is elastic
C. produce a smaller output than when it did not disrciminate
D. charger a competitive price ot all its customers
If a monopolist engages in price discrimination it will
A. realize a smaller profit
B. charger a higher price where individual demand in inelastic and a lower price where individual demand is elastic
C. produce a smaller output than when it did not disrciminate
D. charger a competitive price ot all its customers
answer
B. charge a higher price where individual demand is inelcatic and a lower price where individual demand is elastic
question
(chapter 12 pure monopoly)
A dilemma of regulation is that
A. the regualted price that achieves allocativee efficiency is also likley to result in persitenet economic profits
B. the regulated price that results in a "fair return" restricts output by more than would unregulated monopoly
C. regulated pricing always conflicts with the "due processes" provision of the Consitution
D. the regulated price that achieves allocative efficiency is also likley to result in losses
A dilemma of regulation is that
A. the regualted price that achieves allocativee efficiency is also likley to result in persitenet economic profits
B. the regulated price that results in a "fair return" restricts output by more than would unregulated monopoly
C. regulated pricing always conflicts with the "due processes" provision of the Consitution
D. the regulated price that achieves allocative efficiency is also likley to result in losses
answer
D. the regulated price that achieves allocative efficiency is also likley to result in losses
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