micro last section - Assignment Essays

question

monopolistic competition means

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many firms producing differentiated products

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monopolistically competitive and purely competitive industries are similar in that:

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there are few, if any, barriers to entry

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in long run equilibrium a monopolistically competitive firm will:

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have excess production capacity

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correct about monoplistically competitive industry

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if there are short run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right

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the mutual interdependence that characterizes oligopoly arises because:

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a small number of firms produces a large proportion of industry output

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suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm perceives its:

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demand curve is kinked-being steeper BELOW the going price than above

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a kink may exist in an oligopolist's demand curve because:

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an abrupt change in price elasticity occurs

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one would expect the collusions among oligopolistic producers would be easiest to achieve in which of the following cases?

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a very few firms producing a homogeneous product

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retail outlets operate in which of the following market structures

answer

monopolistic competition

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price tends to exceed marginal cost uner

answer

monopolistic competition
monopoly
oligopoly

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which represents a hazard to the stability of cartels

answer

high prices and profits induce cheating and cause competitors to enter the industry

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if total revenue is increasing, it must be true that

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MR > 0

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nonprice competition

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product development, advertising, and product packaging

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the term oligopoly indicates:

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a few firms producing either a differentiated or homogeneous product

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unique feature of oligopoly

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mutual interdependence

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if an oligopoly is faced with a kinked demand curve that is relatively elastic above and relatively inelastic below, the going price, then it will

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decrease total revenue by either increasing or decreasing its price

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in which of the marketing models do demand and marginal revenue diverge

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pure monopoly, oligopoly, monopolistic compeititon

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if the long run ATC curve declined throughout the entire relevant range of production, this would be evidence of

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economies of scale

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if MC is constant it is

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equal to AVC

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when MP is rising MP is falling, when MP is falline MC s rising

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MP and MC move opposite

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Marginal Cost is the price of an extra variable input (for example, an additional worker) divided by its marginal product

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true

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when marginal product equals average physical product

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average variable cost is equal to marginal cost

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relationship between MC and ATC

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if MC is declining, ATC must also be declining

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if the prices of a firm;s variable inputs were to fall

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MC, AVC, and ATC would all fall

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if a firm decides to produce no output in the short run, its costs will be

answer

its fixed costs

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in the long run

answer

all costs are variable costs

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if a fir doubles its output in the long run and its unit costs of production decline, we can conclude that

answer

economies of scale are being realized

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when marginal product is below average product,

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average product must be decreasing

MP<AP, AP decreasing
MP>AP, AP increasing

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marginal costs increases bc of

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the law of diminishing marginal returns

1 of 29

question

monopolistic competition means

answer

many firms producing differentiated products

question

monopolistically competitive and purely competitive industries are similar in that:

answer

there are few, if any, barriers to entry

question

in long run equilibrium a monopolistically competitive firm will:

answer

have excess production capacity

question

correct about monoplistically competitive industry

answer

if there are short run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right

question

the mutual interdependence that characterizes oligopoly arises because:

answer

a small number of firms produces a large proportion of industry output

question

suppose an oligopolistic producer assumes its rivals will ignore a price increase but match a price cut. In this case the firm perceives its:

answer

demand curve is kinked-being steeper BELOW the going price than above

question

a kink may exist in an oligopolist's demand curve because:

answer

an abrupt change in price elasticity occurs

question

one would expect the collusions among oligopolistic producers would be easiest to achieve in which of the following cases?

answer

a very few firms producing a homogeneous product

question

retail outlets operate in which of the following market structures

answer

monopolistic competition

question

price tends to exceed marginal cost uner

answer

monopolistic competition
monopoly
oligopoly

question

which represents a hazard to the stability of cartels

answer

high prices and profits induce cheating and cause competitors to enter the industry

question

if total revenue is increasing, it must be true that

answer

MR > 0

question

nonprice competition

answer

product development, advertising, and product packaging

question

the term oligopoly indicates:

answer

a few firms producing either a differentiated or homogeneous product

question

unique feature of oligopoly

answer

mutual interdependence

question

if an oligopoly is faced with a kinked demand curve that is relatively elastic above and relatively inelastic below, the going price, then it will

answer

decrease total revenue by either increasing or decreasing its price

question

in which of the marketing models do demand and marginal revenue diverge

answer

pure monopoly, oligopoly, monopolistic compeititon

question

if the long run ATC curve declined throughout the entire relevant range of production, this would be evidence of

answer

economies of scale

question

if MC is constant it is

answer

equal to AVC

question

when MP is rising MP is falling, when MP is falline MC s rising

answer

MP and MC move opposite

question

Marginal Cost is the price of an extra variable input (for example, an additional worker) divided by its marginal product

answer

true

question

when marginal product equals average physical product

answer

average variable cost is equal to marginal cost

question

relationship between MC and ATC

answer

if MC is declining, ATC must also be declining

question

if the prices of a firm;s variable inputs were to fall

answer

MC, AVC, and ATC would all fall

question

if a firm decides to produce no output in the short run, its costs will be

answer

its fixed costs

question

in the long run

answer

all costs are variable costs

question

if a fir doubles its output in the long run and its unit costs of production decline, we can conclude that

answer

economies of scale are being realized

question

when marginal product is below average product,

answer

average product must be decreasing

MP<AP, AP decreasing
MP>AP, AP increasing

question

marginal costs increases bc of

answer

the law of diminishing marginal returns

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