Economic: Economics and Correct Answer

Topics: Economics, Costs, Perfect competition Pages: 5 (818 words) Published: September 24, 2010
Tu oi,
minh co 2 bai Quiz 4 day. Quiz 3 thi de minh tim da nhe, hinh nhu khong luu thi phai. Linh

Question 1 10 out of 10 points

A monopoly will usually produce
Answer
Selected Answer: where its demand curve is elastic.
Correct Answer: where its demand curve is elastic.

Question 2 10 out of 10 points

Suppose a firm is currently maximizing its profits (i.e., following the MR=MC rule). Assuming that it wants to continue maximizing its profits, if its fixed costs increase, it should Answer
Selected Answer: maintain the same price.
Correct Answer: maintain the same price.

Question 3 10 out of 10 points

A firm that seeks to maximize its revenue is most likely to adhere to which of the following? Answer
Selected Answer: MR =0
Correct Answer: MR =0

Question 4 10 out of 10 points

Assume a perfectly competitive firm's short-run cost is TC = 100 + 160Q + 3Q2. If the market price is $196, what should it do? Answer
Selected Answer: produce 6 units and continue operating
Correct Answer: produce 6 units and continue operating

Question 5 10 out of 10 points

When a firm has the power to establish its price,
Answer
Selected Answer: P > MR.
Correct Answer: P > MR.

Question 6 10 out of 10 points

Which of the following characteristics is most important in differentiating between perfect competition and all other types of markets?
Answer
Selected Answer: whether or not firms are price takers
Correct Answer: whether or not firms are price takers

Question 7 10 out of 10 points

In economic analysis, any amount of profit earned above zero is considered "above normal" because Answer
Selected Answer: this would indicate that the firm's revenue exceeded both its accounting and opportunity cost. Correct Answer: this would indicate that the firm's revenue exceeded both its accounting and opportunity cost.

Question 8 10 out of 10 points

A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is Answer

Selected Answer: $30.
Correct Answer: $30.

Question 9 10 out of 10 points

Which of the following is true for a monopoly?
Answer
Selected Answer: P > MR
Correct Answer: P > MR

Question 10 10 out of 10 points

Which of the following products is the best example of perfect competition? Answer

Selected Answer: apples
Correct Answer: apples

2010/1/26 Linh DoQuy Workmail <linhdoquy@gmail.com>

Question 1 10 out of 10 points

Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run?
Answer
Selected Answer: P < AVC
Correct Answer: P < AVC

Question 2 10 out of 10 points

Which of the following products is the best example of perfect competition? Answer
Selected Answer: apples
Correct Answer: apples

Question 3 10 out of 10 points

Which of the following is true for a monopoly?
Answer
Selected Answer: P > MR
Correct Answer: P > MR

Question 4 10 out of 10 points

When a firm produces at the point where MR = MC, the profit that it is earning is considered to be Answer
Selected Answer: Not enough information is provided.
Correct Answer: Not enough information is provided.

Question 5 10 out of 10 points

Assume a profit maximizing firm's short-run cost is TC = 700 + 60Q. If its demand curve is P = 300 - 15Q, what should it do in the short run?
Answer
Selected Answer: continue operating because it is earning an economic profit Correct Answer: continue operating because it is earning an economic profit

Question 6 10 out of 10 points

A perfectly competitive firm sells 15 units of output at the going market price of...
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