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College that Business management Dept. Of EconomicsMicroeconomics Econ 110 Prof. Mohammed El-Sakka Quiz No. 6Name \ -------------------------------------------------------------Univ. No.\-------------------Serial No.\ -----------------------1. I beg your pardon of the complying with will not hold true because that a competitive firm in long-run equilibrium? A) P equals AFC B) P equals minimum ATC C) MC equals minimum ATC D) P equates to MC Answer: A 2 A completely competitive seller is: A) both a "price maker" and also a "price taker." B) neither a "price maker" no one a "price taker." C) a "price taker." D) a "price maker." Answer: C 3. I beg your pardon of the following is not a basic characteristic the pure competition? A) substantial non-price competition B) no obstacles to the entry or exodus of that company C) a standardized or homogeneous product D) a huge number that buyers and sellers Answer: A 4. Price is constant or given to the individual firm offering in a purely competitive industry because: A) the firm"s need curve is downsloping. B) the product differentiation reinforced by comprehensive advertising. C) each seller offers a negligible portion of total supply. D) there are no an excellent substitutes because that its product. Answer: C 5. For a completely competitive seller, price equals: A) median revenue. B) marginal revenue. C) total revenue split by output. D) every one of the above. Answer: D 6. The marginal revenue curve the a completely competitive firm: A) lies below the firm"s demand curve. B) rises at boosting rate as calculation expands. C) is horizontal at the market price. D) is downsloping since price need to be decreased to sell more output. Answer: C 7. A perfectly elastic demand curve implies that the firm: A) must lower price come sell more output. B) can sell as lot output together it chooses at the existing price. C) realizes an increase in total revenue i beg your pardon is less than product price when it sell an extra unit. D) is selling a identified (heterogeneous) product. Answer: B 8. The reality that a purely competitive firm"s total revenue curve is linear and also upsloping come the right indicates that: A) product price increases as calculation increases. B) product price to reduce as calculation increases. C) product price is constant at all levels the output. D) marginal revenue declines as more output is produced. Answer: C1. A competitive for sure in the brief run can determine the profit-maximizing (or loss-minimizing) calculation by equating: A) price and average complete cost. B) price and also average resolved cost. C) marginal revenue and also marginal price D) price and marginal revenue. Answer: C 2. A certain reaches a break-even suggest (normal profit position) where: A) marginal revenue cuts the horizontal axis. B) marginal cost intersects the median variable price curve. C) full revenue equals full variable cost. D) full revenue and total expense are equal. Answer: D 3. In the brief run the individual competitive firm"s it is provided curve is that segment the the: A) mean variable cost curve lying below the marginal price curve. B) marginal cost curve lying above the median variable expense curve. C) marginal revenue curve lying below the need curve. D) marginal price curve lying between the average full cost and average variable expense curves. Answer: B 4. Intend you uncover that the price of your product is much less than minimum AVC. Friend should: A) minimize your accident by producing where p = MC. B) maximize your profits by developing where p = MC. C) close under because, through producing, her losses will exceed your total fixed costs. D) close down due to the fact that total revenue exceeds complete variable cost. Answer: C answer the following question(s) on the basis of the following data confronting a firm: Q 1 2 3 4 5 6 7 8AVC 17 16 15 14 15 17 21 25MC 18 13 14 26 30 35 41 48ATC 117 66 48 40 36 30 33 395. Refer to the above data. If the market price for the firm"s product is $30, the vain firm will certainly produce: A) 8 systems at an financial profit the $16. B) 5 units at a loss of $30. C) 8 systems at a loss equal to the firm"s total fixed cost. D) 7 devices at an economic profit that $41.50. Answer: B 6. Refer to the above data. If the market price for the firm"s product is $41, the competitive firm will: A) A) create 7 systems at a loss of $17.40. C) close down in the short run. B) B) produce 7 units at a benefit of $56. D) create 6 devices at a loss of $23.80. Answer: B 7.
See more: Given The Data In The Chart Above, Which Of The Following Trade Scenarios Is The Most Efficient?
Describe the above data. If the industry price for the firm"s product is $12, the compete firm will produce: A) A) 4 units C) 8 systems B) B) 6 systems D) zero units Answer: D