1. Marginal revenue for a pucount competitive firm A. is better than price. B. is much less than price. C. is equal to price. D. may be either greater or much less than price.
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2. A pucount competitive seller is A. both a "price maker" and also a "price taker." B. neither a "price maker" nor a "price taker." C. a "price maker." D. a "price taker."
3. In the brief run, a pucount competitive firm will certainly run (not shutdown) if A. P = ATC. B. P > AVC. C. P = MC. D. P > ATC.
4. Marginal revenue may be characterized as the A. change in product price connected via the sale of another unit of output. B. change in average revenue associated via the sale of an additional unit of output. C. distinction between product price and average total cost. D. change in full revenue associated via the sale of another unit of output.
5. The loss of a pucount competitive firm that closes down in the brief run A. is equal to its total variable prices. B. is zero. C. is equal to its total solved prices. D. cannot be figured out.
6. In the short-run, the individual competitive firm"s supply curve is that segment of the A. average variable cost curve that lies listed below the marginal price curve. B. marginal expense curve that lies over the average variable expense curve. C. marginal revenue curve that lies listed below the demand curve. D. marginal expense curve that lies in between the average full price and also average variable price curves.
7. Which of the adhering to is a function of pure competition? A. firm"s demand curve is perfectly inelastic B. each firm sells an identical product C. obstacles to entry exist D. the firm is a "price maker"
8. A competitive firm will certainly maximize profits at the output at which A. the excess of total revenue over complete expense is best. B. complete revenue and also complete price are equal. C. price exceeds average variable cost by the biggest amount. D. the difference between marginal revenue and price is at a maximum. E. the difference in between price and also marginal price is at a minimum.
9. Price is constant, or "given" (i.e. perfectly elastic demand), for the individual firm marketing in a purely competitive industry because A. the firm"s demand also curve is down-sloping. B. of product differentiation reincompelled by extensive advertising. C. each seller provides an identical product D. tbelow are no great substitutes for its product.
10. In a pucount competitive sector, in the short-run, A. the firm deserve to run at a loss. B. the firm deserve to operate at a profit. C. the firm can shutdown. D. all of the over are possible
11. If a firm is making a normal profit, this implies that A. a zero financial profit is being earned. B. an adverse economic profit is being earned. C. a positive financial profit is being earned. D. none of the above
12. In the long-run, the typical firm in pure competition will earn A. positive financial profit. B. negative financial profit. C. zero financial profit. D. namong the above
13. In the long-run, the typical firm in pure competition will certainly operate A. at minimum average total expense. B. at maximum average full cost. C. listed below minimum average variable expense. D. namong the above
14. The term "productive efficiency" describes A. any type of short-run equilibrium position of a competitive firm. B. the production of the product-mix the majority of wanted by consumers. C. the production of a good at the lowest average complete expense. D. fulfilling the condition P = MC.
15. In the long-run, the typical pudepend competitive firm is efficient because, for the last unit developed, A. price equates to minimum average variable price. B. price equals minimum average full price. C. price equals minimum average solved price. D. price amounts to marginal price.
Figure 1: This figure describes FireLess, a purely competitive firm that manufactures a standardized, generic smoke detector in the North Amerihave the right to market. The amount levels in the graph below are everyday manufacturing levels. FireLess incurs total fixed prices of roughly $360 per day.
16. Refer to Figure 1, above, to answer the complying with. If the market sets a price equal to $16 per detector, FireLess need to develop (to maximize profits) A. 40 detectors per day. B. 45 detectors per day. C. 70 detectors per day. D. 90 detectors per day.
17. Refer to Figure 1, over, to answer the complying with. If the sector sets a price equal to $16 per detector, FireLess will earn a maximum daily complete economic profit of A. $1440 per day. B. $270 per day. C. $720 per day. D. zero financial profit per day.
18. Refer to Figure 1, over, to answer the complying with. If the sector sets a price equal to $5 per detector, FireLess must produce (to maximize profits) A. 30 detectors per day. B. 40 detectors per day. C. 70 detectors per day. D. zero detectors per day.
19. Refer to Figure 1, above, to answer the following. If the market sets a price equal to $5 per detector, the ideal profit that FireLess can achieve is A. $150 per day. B. a loss of $180 per day. C. a loss of $360 per day. D. zero financial profit per day.
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20. Refer to Figure 1, over, to answer the adhering to. Assume that the per unit cost curves shown in Figure 1 are the long-run per unit expense curves for the typical firm in the smoke detector industry. In the long-run, the sector price will resolve at A. $5 per detector. B. $6 per detector. C. $11 per detector. D. $12 per detector.