1 If elasticity of demand is equal to one, the good or services would be A.) Ine
ID: 1166613 • Letter: 1
Question
1
If elasticity of demand is equal to one, the good or services would be
A.) Inelastic
B.) Unitarily elastic
C.) Elastic
D.) Consumers willingness to purchase goods or services
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2
What type of demand curve does a perfectly competitive market structure face?
A.) Perfectly inelastic curve
B.) Upward sloping demand curve
C.) Perfectly elastic demand curve
D.) Downward sloping demand curve
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3
Which type of market structure maximizes profits at the point in which marginal revenue equals marginal cost?
A.) Monopolies
B.) Natural monolpolies
C.) Oligopolies
D.) Perfect and imperfect market structure
4
Which types or market structure are more prominet in teh united states?
A.) Monopolies
B.) Monopolies and oligoplies
C.) Perfectly competitive market structure and monopolstic competitive market structures
D.) Monopolstic market structures and olipolies
5
For an imperfect market structure, if marginal revenue (MR) > marginal cost (MC), the firm will do the following:
A.) Remain at the same level of production
B.) increase output
C.) decrease output
D.) shutdown
6
Which of the following is not a characteristic of a monooplistic market structure?
A.) one provider of a good or service
B.) high barries to entry
C.) price makers
D.) many buyers and sellers
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7
What is the definition of utility?
A.) Marginal utility is falling
B.) satisfaction is at its highest level
C.) additional goods are being consumers
D.) a good or service that is undesirable
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8
Goods or services that have an elastic demand the elastity of demand would be:
A.) less then one
B.) equal to one
C.) greater than one
D.) equal to ten
9
How do monopolstic market structures determine prices to charge for good and services?
A.) Price is read from the demand curve from the intersection of the profit to charge for goods and services?
B.) monoplistic market structures can price their goods and services at any point they wish
C.) price is read from the deamand curve from the average total cost (ATC) curve
D.) price is determined based on demand and supply
10
What is meant by disminishing marginal utility?
A.) total utility is falling
B.) marginal utility is increasing as each additional unit is consumed
C.) marginal utility is decreasing as each additional unit is consumed
D.) total utility is equal to one
Explanation / Answer
Answer 1 : If elasticity of good is equal to 1 it means that the good and services are unit elastic. It means that quantity demanded changes in the same proportion as there is a change in the price. Option B is correct.
Answer 2 : The demand curve for a perfectly competitive firm is the downward sloping demand curve as it varies with the change in the price as to change in the quantity demanded has been increased. A strategy is used to make the maximum profit by increase market share and reduced cost. Option d is correct.
Answer 3: perfect and imperfect market structure has profit maximization where MR is equal to MC. The market structure has earn maximum profit where marginal revenue exactly equal to marginal cost. Option Dis correct.
Answer 4: Option C is correct. As monopolistic and perfect competition are available in the market. The main purpose is that there are few sellers and selling homogeneous or differentiated product.
Answer 5 : Option B is correct. As it increases the output by increasing profit. The output increases as the profit also increases.
Answer 6: Option A is correct. As there are many provider of goods and services .There are few sellers selling homogeneous product.
Answer 7: option B is correct.
Answer8 : Elastic demand has value greater than 1.
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