Lesson 8 Quiz (Microeconomics)

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Posted on

May 24th, 2023

question

Using the letter labels on Graph 7.5 above, a firm with these costs and taking a market price of E would have a total cost box of ___________ .

answer

ESOB

question

A Monopolistically Competitive firm's products ________________ .

answer

are differentiated

question

There are many benefits of pure competition for society and consumers.

answer

True

question

_________________ -- A large number of buyers and sellers in the market, none of whom can individually affect the price of the product or service being bought or sold.

answer

Pure competition

question

Price (set by the market in pure competition) always remains the same.

answer

True

question

Figure 7.1 Competitive supply and demand relationships, industry and firm.

The equilibrium quantity for this industry is _______ units.

answer

300

question

If output is three units, then MR > MC > AVC and output should be _________ .

answer

increased

question

This addition of three more units sold will increase average revenue by the amount of the price of a single product.

answer

True

question

Figure 7.1 Competitive supply and demand relationships, industry and firm

answer

false

question

Within pure competition there is ___________ societal and individual benefits achieved as envisioned by Adam Smith in the invisible hand concept.

answer

maximum

question

In the table above the output level where the price minus ATC (average total cost) is a maximum (or least negative) is the maximum profit position. This occurs at an output of ________ units.

answer

question

If this firm produced at Q = 1, then it would incur a loss of $ ______.

answer

question

Pure competition is important to economists because it is __________________ .

answer

the most efficient allocation of resources
the easiest model to study
the "standard" of comparison to measure for maximum efficiency
all the above***

question

If a pure competition firm is producing where MR>MC>AVC, the firm will increase profits or reduce losses by ______________ the level of production

answer

increasing

question

__________ competition assumes perfect mobility of goods/services (all goods and services can be delivered anywhere in the world).

answer

perfect

1 of 15

question

Using the letter labels on Graph 7.5 above, a firm with these costs and taking a market price of E would have a total cost box of ___________ .

answer

ESOB

question

A Monopolistically Competitive firm's products ________________ .

answer

are differentiated

question

There are many benefits of pure competition for society and consumers.

answer

True

question

_________________ -- A large number of buyers and sellers in the market, none of whom can individually affect the price of the product or service being bought or sold.

answer

Pure competition

question

Price (set by the market in pure competition) always remains the same.

answer

True

question

Figure 7.1 Competitive supply and demand relationships, industry and firm.

The equilibrium quantity for this industry is _______ units.

answer

300

question

If output is three units, then MR > MC > AVC and output should be _________ .

answer

increased

question

This addition of three more units sold will increase average revenue by the amount of the price of a single product.

answer

True

question

Figure 7.1 Competitive supply and demand relationships, industry and firm

answer

false

question

Within pure competition there is ___________ societal and individual benefits achieved as envisioned by Adam Smith in the invisible hand concept.

answer

maximum

question

In the table above the output level where the price minus ATC (average total cost) is a maximum (or least negative) is the maximum profit position. This occurs at an output of ________ units.

answer

question

If this firm produced at Q = 1, then it would incur a loss of $ ______.

answer

question

Pure competition is important to economists because it is __________________ .

answer

the most efficient allocation of resources
the easiest model to study
the "standard" of comparison to measure for maximum efficiency
all the above***

question

If a pure competition firm is producing where MR>MC>AVC, the firm will increase profits or reduce losses by ______________ the level of production

answer

increasing

question

__________ competition assumes perfect mobility of goods/services (all goods and services can be delivered anywhere in the world).

answer

perfect

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