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Teaching Since:	Jul 2017
Last Sign in:	304 Weeks Ago, 5 Days Ago
Questions Answered:	15833
Tutorials Posted:	15827

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MBA,PHD, Juris Doctor
Strayer,Devery,Harvard University
Mar-1995 - Mar-2002

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Manager Planning
WalMart
Mar-2001 - Feb-2009

Category > Business & Finance Posted 05 Sep 2017 My Price 10.00

please answer for me chapter 5 questions correctly

Quiz

Question 2 (1 point)

Price takers:

Question 2 options:

	are those individuals in a competitive market who must accept the market price as given.
	is a term that implies that whatever the price is, an individual will accept it as fair.
	is a term that essentially means that prices have nothing to do with individuals or groups.
	is a term that refers to buyers not sellers.

Question 3 (1 point)

Total revenue is a firm's:

Question 3 options:

	change in revenue resulting from a unit change in output.
	ratio of revenue to quantity.
	difference between revenue and cost.
	total output times the price at which it sells that output.

Question 4 (1 point)

An assumption of the model of perfect competition is:

Question 4 options:

	identical goods.
	difficult entry and exit.
	few buyers and sellers.
	limited information.

Question 5 (1 point)

Price takers are individuals in a market who:

Question 5 options:

	select a price from a wide range of alternatives.
	select the lowest price available in a competitive market.
	select the average of prices available in a competitive market.
	have no ability to affect the price of a good in a market.

Question 6 (1 point)

In the model of perfect competition:

Question 6 options:

	the market forces of supply determine the price.
	individual firms can influence the price, but only slightly.
	no individual or firm has enough power to have any impact on price.
	the market forces of demand determine the price.

Question 7 (1 point)

A firm's total output times the price at which it sells that output is:

Question 7 options:

	net revenue.
	total revenue.
	average revenue.
	marginal revenue.

Question 8 (1 point)

Marginal revenue is a firm's:

Question 8 options:

	ratio of profit to quantity.
	ratio of average revenue to quantity.
	price per unit times the number of units sold.
	increase in total revenue when it sells an additional unit of output.

Question 9 (1 point)

If a perfectly competitive firm is producing a quantity that generates P < MC, then profit:

Question 9 options:

	is maximized.
	can be increased by increasing the price.
	can be increased by increasing production.
	can be increased by decreasing production.

Question 10 (1 point)

In perfect competition, the profit- maximizing level of output occurs where:

Question 10 options:

	MR =MC > minimum AVC.
	price > marginal cost > minimum AVC.
	MR > MC > minimum AVC.
	P = MR > MC.

Question 11 (1 point)

A perfectly competitive firm will incur an economic loss but will continue producing the profit-maximizing quantity of output in the short run if price is:

Question 11 options:

	less than marginal cost.
	less than average variable cost.
	greater than average total cost.
	greater than average variable cost and less than average total cost.

Question 12 (1 point)

If a perfectly competitive firm is producing a quantity that generates MC = MR, then profit:

Question 12 options:

	is maximized.
	can be increased by increasing production.
	can be increased by decreasing production.
	can be increased by increasing the price.

Question 13 (1 point)

Which of the following is true?

Question 13 options:

	Profit per unit is price minus AVC.
	Total economic profit is per unit profit times quantity.
	If price is less than ATC, the firm will shut down in the short run.
	If price is less than marginal cost, the perfectly competitive firm should raise the price and increase output.

Question 14 (1 point)

The profit-maximizing level of output for a perfectly competitive firm occurs where there is equality between the slopes of the:

Question 14 options:

	marginal revenue and demand curves.
	marginal revenue and marginal cost curves.
	total revenue and total cost curves.
	average revenue and average variable cost curves.

Question 15 (1 point)

If price is less than average variable cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:

Question 15 options:

	produce at a loss.
	produce at a profit.
	shut down production.
	produce more than the profit-maximizing quantity.

Question 16 (1 point)

If price is greater than average total cost at the profit-maximizing quantity of output in the short run, a perfectly competitive firm will:

Question 16 options:

	produce at a loss.
	produce at a profit.
	shut down production.
	produce more than the profit-maximizing quantity.

Question 17 (1 point)

If P₁ is the market price, and if this firm has decided to produce any output, it should produce:

Question 17 options:

	where MR > MC.
	quantity q₂.
	quantity q₁ where MR > MC.
	a quantity greater than q₁ but less than q₂.

Question 18 (1 point)

At approximately 4,500 pounds of carrots:

Question 18 options:

	total economic profit is the greatest.
	total revenue is equal to total cost.
	marginal revenue is equal to marginal cost.
	marginal cost is at its maximum.

Question 19 (1 point)

The exhibit shows cost curves for a firm operating in a perfectly competitive market. At quantity q₅, AVC is the same as: _______ .

Question 19 options:

	P_4.
	P_3.
	P_2.
	P_1.

Question 20 (1 point)

Total revenue and total cost are equal at approximately _______ pounds and $_______ .

Question 20 options:

	2,000; 1,400
	5,000; 1,600
	10,000; 2,800
	15,000,2,800

Question 21 (1 point)

The exhibit shows cost curves for a firm operating in a perfectly competitive market. If the market price is P₄:

Question 21 options:

	marginal revenue and price are the same.
	marginal revenue is less than P₄.
	marginal revenue is greater than P₄.
	none of the above is true.

Question 22 (1 point)

Accountants use only _______ costs in their computations of short-run total cost.

Question 22 options:

	opportunity
	implicit
	explicit costs
	variable

Question 23 (1 point)

When economic profits in an industry are zero:

Question 23 options:

	firms are really doing badly.
	it means that firms are doing as well as they could do in other markets.
	firms should exit, so they can make an economic profit in some other market.
	the industry is not in long-run equilibrium.

Question 24 (1 point)

A perfectly competitive firm's supply curve in the short run is the rising portion of the marginal cost curve:

Question 24 options:

	for prices less than minimum of the AVC curve.
	for prices above the minimum of the AVC curve.
	for prices above the minimum of the ATC curve.
	below the minimum of the ATC curve.

Question 25 (1 point)

S₃ would be the _______-run supply curve if _______.

Question 25 options:

	long; expanded production leaves production costs unchanged
	short; expanded production changes production costs
	long; there is no entry into or exit from the industry
	medium; costs are changed if there is easy entry

Question 26 (1 point)

Economic profits in a perfectly competitive industry induce _______ , and losses induce _______ .

Question 26 options:

	exit; entry
	entry; entry
	entry; exit
	exit; exit

Question 27 (1 point)

A restricted-input monopoly is most likely to result if a single firm:

Question 27 options:

	is the only seller in a small town or community.
	is investor owned, but granted the exclusive right by the government to operate in a market.
	experiences long-run increasing economies of scale over a wide range of output.
	has gained control over a strategic factor of production.

Question 28 (1 point)

A natural monopoly is most likely to result if a single firm:

Question 28 options:

	is the only seller in a community.
	is investor-owned, but is granted the exclusive right by the government to operate in a market.
	experiences economies of scale over a wide range of output.
	has gained control over a strategic input of an important production process.

Question 29 (1 point)

The demand curve facing a monopolist is:

Question 29 options:

	horizontal, the same as that facing a perfectly competitive firm.
	downward sloping, the same as that facing a perfectly competitive firm.
	upward sloping, the same as that facing a perfectly competitive firm.
	downward sloping, unlike the horizontal demand curve facing a perfectly competitive firm.

Question 30 (1 point)

The profit-maximizing price is price:

Question 30 options:

	N.
	O.
	P.
	Q.

Question 31 (1 point)

A monopoly is a market characterized by:

Question 31 options:

	a product with no close substitutes.
	a single buyer and several sellers.
	a large number of small firms.
	a small number of large firms.

Question 32 (1 point)

Suppose that you build a high-speed, magnetically powered transportation system from New York to Los Angeles. High fixed costs resulting from the enormous quantity of capital used in this system enable decreasing average cost for any conceivable level of demand. Your monopoly would result from:

Question 32 options:

	sunk costs.
	location.
	economies of scale.
	government restrictions.

Question 33 (1 point)

Which of the following is (are) true concerning monopoly?

Question 33 options:

	It is at the opposite end of the spectrum from a perfectly competitive firm.
	A monopoly has no rivals.
	A monopoly does not need to worry about other firms entering the industry.
	All of the above are true.

Question 34 (1 point)

In monopoly:

Question 34 options:

	because P > MC, a basic condition for efficiency is violated.
	consumers are confronted with a price that is lower than marginal cost.
	consumers will consume more of the good than is economically efficient.
	all of the above are true.

Question 35 (1 point)

In general, economists are critical of monopoly where _______ exist(s).

Question 35 options:

	no natural monopoly
	a natural monopoly
	only a few firms
	persistent economies of scale

Question 36 (1 point)

In contrast to a monopoly firm, a perfectly competitive firm:

Question 36 options:

	is a price taker.
	faces a downward-sloping demand curve.
	has only a moderate degree of monopoly power.
	produces more than the efficient level of output.

Question 37 (1 point)

A statement that best reflects an evaluation of monopoly firms is that:

Question 37 options:

	they are economically efficient.
	they have little or no market power.
	consumers are given fewer choices and higher prices.
	competition should replace all monopolies.

Question 38 (1 point)

The profit-maximizing rule MC = MR is followed by:

Question 38 options:

	a monopoly, but not a perfectly competitive firm.
	a perfectly competitive firm, but not a monopoly.
	both a monopoly and a perfectly competitive firm.
	neither a monopoly nor a perfectly competitive firm.

Question 39 (1 point)

An analytical approach through which strategic choices can be assessed is called:

Question 39 options:

	benefit-cost analysis.
	econometric theory.
	game theory.
	none of the above.

Question 40 (1 point)

Oligopoly is a market structure characterized by:

Question 40 options:

	independence in decisionmaking.
	uncertainty about the interaction of rival firms.
	substantial diseconomies of scale.
	a large number of small firms.

Question 41 (1 point)

A strategy that is the same regardless of the action of the other player in a game is said to be a:

Question 41 options:

	competitive strategy.
	trigger strategy.
	dominant strategy.
	tit-for-tat strategy.

Question 42 (1 point)

Firms in oligopolistic industries tend to exhibit mutual interdependence in pricing decisions.

Question 42 options:

	True
	False

Question 43 (1 point)

In the long run, monopolistically competitive firms tend to experience:

Question 43 options:

	high economic profits.
	zero economic profits.
	negative economic profits.
	substantial economic losses.

Question 44 (1 point)

The entry of new firms into a monopolistically competitive industry is generally more difficult than is the entry of new firms into an oligopolistic industry.

Question 44 options:

	True
	False

Question 45 (1 point)

The market for plumbing services in a city can be characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for plumbing services. We expect that in the short run the price:

Question 45 options:

	and output of plumbing services will fall.
	and output of plumbing services will remain unchanged.
	and output of plumbing services will rise.
	of plumbing services will rise and the output will fall.

Question 46 (1 point)

A(n) _______ is a single firm with _______ , whereas _______ implies an industry with ________ firm(s) who have (has) _______ .

Question 46 options:

	oligopoly; no barriers to entry; monopoly; many; easy entry and exit
	monopoly; barriers to entry; monopolistic competition; many; easy entry and exit
	monopoly; barriers to entry; oligopoly; few; no barriers to entry
	monopolistic competitor; barriers to entry; monopoly; one; barriers to entry

Question 47 (1 point)

In Panel (a), economic profit per unit is amount:

Question 47 options:

	KL.
	LM.
	MN.
	NO.

Question 48 (1 point)

If a firm under monopolistic competition is producing a quantity that generates MC > MR, then the marginal decision rule tells us that profit:

Question 48 options:

	can be increased by increasing production.
	can be increased by decreasing production.
	can be increased by decreasing the price.
	is maximized only if MC = P.

Question 49 (1 point)

Monopolistic competition is an industry characterized by a:

Question 49 options:

	small number of firms producing identical products, with barriers to entry for firms.
	small number of firms producing similar products, with relatively easy entry for firms.
	large number of firms producing similar products, with relatively easy entry for firms.
	large number of firms producing identical products, with relatively easy entry for firms.

Question 50 (1 point)

Assuming identical production functions and cost curves, the long-run equilibrium of a monopolistically competitive firm, as compared with a perfectly competitive firm, is such that, for the former, price is:

Question 50 options:

	higher and output is greater.
	higher and output is smaller.
	lower and output is greater.
	lower and output is smaller.

Answers

SophiaPretty

(5)

Status NEW Posted 05 Sep 2017 01:09 PM My Price 10.00

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	price and marginal cost are the same.
	price and marginal revenue are the same.
	price and total revenue are the same.
	total revenue and total variable cost are the same.