microeconomics 202- carlisle - Assignment Essays %

question

A competitive firm faces fixed costs even if it produces zero output. If it starts producing and selling some output, which of the following would happen?

answer

...

question

A purely competitive seller is

answer

is perfectly elastic at the market place

question

Pure monopolists may obtain economic profits in the long run because

answer

of barriers of entry

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Barriers to entering an industry

answer

anything that artificially prevents the entry of firms into an industry

question

An increasing-cost industry is the result of

answer

higher resource prices that occur as the industry expands

question

In the short run, a purely competitive firm that seeks to maximize profit will produce

answer

where total revenue exceeds total cost by the maximum amount

question

Economists use the term imperfect competition to describe

answer

those markets which are not purely competitive

question

Local electric or gas utility companies mostly operate in which market structure?

answer

pure monopoly

question

Large minimum efficient scale of plant combined with limited market demand may lead to

answer

natural monopoly

question

Allocative efficiency is achieved when the production of a good occurs where

answer

p=mc

question

A constant-cost industry is one in which

answer

resource prices remain unchanged as output is increased; 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.

question

Marginal revenue is the

answer

total change in total revenue that results in from the sale of 1 additional unit of a firm's product; equal to the change in total revenue divided by the change in the quantity of the product sold

question

The process by which new firms and new products replace existing dominant firms and products is called

answer

creative destruction

question

A natural monopoly occurs when

answer

the demand curve intersects the long-run ATC curve at any point where average total costs are declining

question

The marginal revenue curve for a monopolist

answer

is always below its demand curve if the demand curve is downward sloping

question

The pure monopolist's demand curve is relatively elastic

answer

in the price range where marginal revenue is positive

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If the entry or exit of firms does not affect the resource prices in an industry, we refer to it as a

answer

constant-cost industry

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The MR = MC rule applies

answer

both to pure monopoly and pure competition

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A decreasing-cost industry is one in which

answer

input prices fall or technology improves as the industry expands.

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The term productive efficiency refers to

answer

the production of a good at the lowest average total cost.

1 of 20

question

A competitive firm faces fixed costs even if it produces zero output. If it starts producing and selling some output, which of the following would happen?

answer

...

question

A purely competitive seller is

answer

is perfectly elastic at the market place

question

Pure monopolists may obtain economic profits in the long run because

answer

of barriers of entry

question

Barriers to entering an industry

answer

anything that artificially prevents the entry of firms into an industry

question

An increasing-cost industry is the result of

answer

higher resource prices that occur as the industry expands

question

In the short run, a purely competitive firm that seeks to maximize profit will produce

answer

where total revenue exceeds total cost by the maximum amount

question

Economists use the term imperfect competition to describe

answer

those markets which are not purely competitive

question

Local electric or gas utility companies mostly operate in which market structure?

answer

pure monopoly

question

Large minimum efficient scale of plant combined with limited market demand may lead to

answer

natural monopoly

question

Allocative efficiency is achieved when the production of a good occurs where

answer

p=mc

question

A constant-cost industry is one in which

answer

resource prices remain unchanged as output is increased; 100 units can be produced for $100, then 150 can be produced for $150, 200 for $200, and so forth.

question

Marginal revenue is the

answer

total change in total revenue that results in from the sale of 1 additional unit of a firm's product; equal to the change in total revenue divided by the change in the quantity of the product sold

question

The process by which new firms and new products replace existing dominant firms and products is called

answer

creative destruction

question

A natural monopoly occurs when

answer

the demand curve intersects the long-run ATC curve at any point where average total costs are declining

question

The marginal revenue curve for a monopolist

answer

is always below its demand curve if the demand curve is downward sloping

question

The pure monopolist's demand curve is relatively elastic

answer

in the price range where marginal revenue is positive

question

If the entry or exit of firms does not affect the resource prices in an industry, we refer to it as a

answer

constant-cost industry

question

The MR = MC rule applies

answer

both to pure monopoly and pure competition

question

A decreasing-cost industry is one in which

answer

input prices fall or technology improves as the industry expands.

question

The term productive efficiency refers to

answer

the production of a good at the lowest average total cost.

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