Week 2 eco 365 knowledge Quiz

Week 2 Knowledge Check
Concepts

Mastery

MARGINAL
REVENUE

Questions

100%

1

67%

2

3

4

100%

5

6

7

0%

8

SUPPLY AND
DEMAND
MARGINAL
PRODUCTIVITY

Score: 6/8

COST OF
PRODUCTION

Concept: MARGINAL REVENUE
Concepts

Mastery

MARGINAL
REVENUE

100%

Questions
1

1.
A perfectly competitive firm will be profitable if price at the profitmaximizing quantity is above
A. MC
B. ACV
C. ATC
D. AFC

Correct!
The correct answer is: C.

Concept: SUPPLY AND DEMAND
Concepts

Mastery

SUPPLY AND
DEMAND

67%

Questions
2

3

4

2.
In a perfectly competitive market,
A. individual producers determine market prices B. market supply and market demand determine the price
C. the entrepreneur determines the price
D. individual consumers determine market prices Correct!
The correct answer is: B.

3.
The demand for clothing increases. As a result, the price of clothing increases above the minimum average cost of producing it. In the long run, if the clothing industry is perfectly competitive and is a constant-cost industry,
A. the supply of clothing and the price of clothing will increase
B. the supply of clothing will increase but the price will not
C. the price of clothing will increase but the price will not
D. neither the price nor the supply of clothing will increase
Correct!
The correct answer is: B.
4.
If the long-run market supply curve is perfectly elastic, an increase in demand will cause the final equilibrium to be at
A. the original price but at a smaller output
B. a higher price with a higher output
C. the original price but with a higher output
D. a higher price but with the same output

Incorrect
The correct answer is: C.

Concept: MARGINAL PRODUCTIVITY
Concepts

Mastery

MARGINAL
PRODUCTIVITY

Questions

100%

5

6

7

5.
Number of workers
1
2
3
4
5
6
7
8
9
10

Total Output
4
10
18
28
35
41
45
48
50
49