profit-maximizing quantity of output in the short run, a perfectly competitive f
ID: 1099313 • Letter: P
Question
profit-maximizing quantity of output in the short run, a perfectly
competitive firm will:
A) produce
at a loss.
B) produce
at a profit.
C) shut
down production.
D) produce
more than the profit-maximizing quantity.
all firms will have:
A) identical
plant sizes but may be producing different levels of
output.
B) equal
marginal costs.
C) positive
fixed costs.
D) marginal
cost equal average fixed cost.
and incurs an economic loss if:
A) P
> ATC.
B) P
< AVC.
C) AVC
> P > ATC.
D) AVC
< P < ATC.
A) total
cost.
B) average
variable cost.
C) average
total cost.
D) marginal
cost.
A) difficult
entry and exit.
B) few
buyers and sellers.
C) complete
information.
D) different
goods.
firms will leave the industry and industry output will _______ and
economic losses will _______ in the long run.
A) fall;
fall
B) rise;
fall
C) rise;
rise
D) fall;
rise
A) identical
goods.
B) difficult
entry and exit.
C) few
buyers and sellers.
D) limited
information.
firm, like Dell, that is able to exert influence over prices and
output. This situation violates the perfect competition assumption
of:
A) many
buyers and sellers.
B) easy
entry and exit.
C) complete
information.
D) no
discrimination.
A) is
the MC curve above the minimum of ATC.
B) tells
the quantity produced at each price.
C) must
result in a price greater than MR.
D) shows
the outputs at which the firm makes an economic
profit.
profit-maximizing quantity of output in the short run, a perfectly
competitive firm will:
A) produce
at a loss.
B) produce
at a profit.
C) shut
down production.
D) produce
more than the profit-maximizing quantity.
A) price
taker.
B) price
searcher.
C) cost
maximizer.
D) quantity
taker.
A) individuals
in the market accept the market price as given.
B) individuals
can influence the market price.
C) the
price will be a fair price.
D) the
price will be low.
A) marginal
revenue equals total revenue.
B) marginal
revenue equals price and average revenue.
C) net
revenue equals price.
D) net
revenue equals marginal revenue.
firm:
A) produces
output and earns zero economic profit.
B) produces
output and earns an economic profit.
C) produces
output and incurs an economic loss.
D) does
not produce output and incurs an economic loss.
its:
A) average
variable cost curve above the marginal cost curve.
B) marginal
cost curve above the average fixed cost curve.
C) marginal
cost curve above the average total cost curve.
D) marginal
cost curve above the average variable cost curve.
Explanation / Answer
1 B) produce at a profit.
2 B) equal marginal costs.
3 D) AVC < P < ATC.
4 B) average variable cost.
5 C) complete information.
6 A) fall; fall
7 A) identical goods.
8 D) no discrimination.
9 B) tells the quantity produced at each price.
10 C) shut down production.
11 A) price taker.
12 A) individuals in the market accept the market price as given.
13 C) net revenue equals price.
14 A) produces output and earns zero economic profit.
15 D) marginal cost curve above the average variable cost curve.
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