Une minute late, your test is not accepted Name: 40 Questions: One point for eac
ID: 1114610 • Letter: U
Question
Une minute late, your test is not accepted Name: 40 Questions: One point for each correct answer 1. Which of the following is NOT a characteristic of a perfectly competitive market? a. Firms are free to enter and free to leave the market. c. Goods offered for sale are totally differentiable. b. Firms are price takers since there are many sellers in the market d. Goods offered for sale are essentially identical 2. Which of the following statements best reflects a price-taking firm? a. Its average revenue and marginal revenue are both equal to the market price. b. If the firm were to charge less than the going price, it would sell nose of fits goods. C. The firm has an incentive to charge more than the market price to ecarm higher reveniue, d. The firm can sell only a limited amount of output at the market price before the market price will al 3. Suppose a firm in a competitive market received $1,000 in total revenue, and its marginal revenue is $100 for the last unit produced a. $5 and 50. is the average revenue per unit, and how many units were sold b. $5 and 100. c. $100 and 10. d.$100 and 50 Table #1: The following table presents cost and revenue information for Soper's Port Vineyard. OutputTotalMarginal Cost Quantity Price Total Revenue Marginal Produced Cost Demanded Revenue S68 S68 S68 568 s68 S68 S68 568 S68 100 XXxxxxXXxxx 150 202 317 385 562 682 Fill up the blank entries of table #1 before answering questions 4-7 4. Refer to Table #1 Consumers are willing to pay S68 per unit ofpot wine. what sthe total revenue fr a. $340 selling Suny d. $840. b.$720 c.$820 5. Refer to Table #1. Consumers are willing to pay a. $68. S68 per unit of port wine. What is the marginal revenue from selling the 3rd unit? c. $100. d.$120 b.$80 6. Refer to Table #1. Consumers are willing to pay $68 per unit of port wine, what is the avengereveme a. $68 c. $100. d. $120 b. $80. RMUNNICHAExplanation / Answer
1) Option c is correct (Goods offered for sale are essentially identical)
2) Option a is correct (For a price taker, P = MC = AR)
3) Option c is correct (P = MC = AR = $100 and Units sold = TR/P = 1000/100 = 10 units)
MR = P (when P is constant)
TR = P x Q
MC (nth unit) = TC (n units) - TC ((n-1) units)
4) Option a is correct
5) Option a is correct
6) Option a is correct (AR = TR/Q)
Qp TC MC Qd P ($) TR ($) MR ($) 0 100 0 68 0 1 150 50 1 68 68 68 2 202 52 2 68 136 68 3 257 55 3 68 204 68 4 317 60 4 68 272 68 5 385 68 5 68 340 68 6 465 80 6 68 408 68 7 562 97 7 68 476 68 8 682 120 8 68 544 68Related Questions
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