question
If a firm's revenues do not cover its average variable costs, then that firm has reached its ________________.
answer
shutdown point
question
Given the data provided in the table below, the total revenue (TR) for production at quantity (Q) level 4 equals
answer
$20.00
question
Given the data provided in the table below, what will the amount of profit be for production at quantity (Q) level 7?
answer
-$10.00
question
For a perfectly competitive firm, the marginal cost curve is identical to the firm's ____________________.
answer
supply curve
question
If the price that a firm charges is higher than its _______________ cost of production for that quantity produced, then the firm will earn profits.
answer
average
question
Refer to the table below. In this instance, confirmation that this firm is operating in a perfectly competitive market can readily be ascertained by the fact that its
answer
marginal Revenue is constant
question
If accounting profits for a firm are 20% of output, and the opportunity cost of financial capital is 8% of output, then what do the firm's economic profits equal?
answer
12% of output
question
In the ________________, if profits are not possible, the perfectly competitive firm will seek out the quantity of output where __________________________.
answer
short run; losses are smallest
question
In the United States, a pharmaceutical company's exclusive patent rights last for
answer
20 years
question
Which one of the following is the most accurate description of a monopolist?
answer
a sole producer of a product for which good substitutes are lacking in a market with high barriers to entry
question
When a natural monopoly exists in a given industry, the per-unit costs of production will be
answer
lowest when a single firm generates the entire output of the industry.
question
Following the assumption that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
answer
output will be too small and its price too high
question
The following table shows a monopolist's demand curve and cost information for the production of its good. What quantity will it produce?
answer
30
question
The following figure shows the average cost curve, demand curve, and marginal revenue curve for a monopolist. After maximizing profits, what do the firm's costs equal?
answer
the area of rectangle ABGH
question
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
answer
predatory pricing
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