1. ECO1050 u06q1 Question 1 (Points: 3) Which of the following is true of a perf
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Question
1. ECO1050 u06q1 Question 1 (Points: 3)Which of the following is true of a perfectly competitive firm? (3 points).
1. It has a perfectly inelastic demand.
2. It sells a product that has perfect substitutes.
3. It has a perfectly elastic supply.
4. All of the above answers are correct.
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2. ECO1050 u06q1 Question 2 (Points: 3)
This is one requirement for an industry to be perfectly competitive? (3 points).
1. Established firms have no advantage over new firms.
2. Different firms produce widely different products.
3. Established firms have a significant advantage over new firms.
4. Sellers and buyers have imperfect information about prices.
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3. ECO1050 u06q1 Question 3 (Points: 2)
A monopoly occurs when this happens. (2 points).
1. Each firm produces a product that is slightly different from the other firms.
2. A few firms control the market.
3. There are many firms producing the same product.
4. One firm sells a good that has no close substitutes and a barrier blocks entry for other firms.
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4. ECO1050 u06q1 Question 4 (Points: 2)
A market is classified as monopolistically competitive when this happens. (2 points).
1. Many firms produce a slightly differentiated product.
2. There is a barrier that blocks entry by other firms.
3. A small number of firms compete.
4. Many firms produce the same product.
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5. ECO1050 u06q1 Question 5 (Points: 2)
A market is classified as an oligopoly when this happens. (2 points).
1. A few firms compete.
2. Many firms produce the same product.
3. Many firms produce a slightly differentiated product.
4. A barrier blocks entry by other firms.
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6. ECO1050 u06q1 Question 6 (Points: 3)
A perfectly competitive firm can do this. (3 points)
1. Raise its price in order to increase its total revenue.
2. Sell at a higher price to customers willing to pay more.
3. Sell all of its output at the prevailing market price.
4. None of the above answers is correct.
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7. ECO1050 u06q1 Question 7 (Points: 2)
Because perfectly competitive firms are price takers, they face a demand that is what? (2 points).
1. Perfectly inelastic.
2. Highly inelastic, but it is perfectly elastic in only a few limiting cases.
3. Perfectly elastic.
4. None of the above answers is correct.
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8. ECO1050 u06q1 Question 8 (Points: 2)
For a perfectly competitive firm, marginal revenue is this. (2 points).
1. Less than the price.
2. Equal to the price.
3. Greater than the price.
4. Equal to the change in profit from selling one more unit.
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9. ECO1050 u06q1 Question 9 (Points: 3)
A firm maximizes its profit by producing the amount of output such that this happens. (3 points).
1. Marginal revenue exceeds marginal cost.
2. Marginal cost is minimized.
3. Marginal revenue is maximized.
4. Marginal revenue equals marginal cost.
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10. ECO1050 u06q1 Question 10 (Points: 3)
For the perfectly competitive broccoli producers in California, the market demand curve for broccoli is what? (3 points).
1. Nonexistent.
2. Upward sloping.
3. A horizontal line.
4. Downward sloping.
Explanation / Answer
1. ECO1050 u06q1 Question 1 (Points: 3)
Which of the following is true of a perfectly competitive firm? (3 points).
4. All of the above answers are correct.
Save Answer
2. ECO1050 u06q1 Question 2 (Points: 3)
This is one requirement for an industry to be perfectly competitive? (3 points).
1. Established firms have no advantage over new firms.
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3. ECO1050 u06q1 Question 3 (Points: 2)
A monopoly occurs when this happens. (2 points).
4. One firm sells a good that has no close substitutes and a barrier blocks entry for other firms.
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4. ECO1050 u06q1 Question 4 (Points: 2)
A market is classified as monopolistically competitive when this happens. (2 points).
1. Many firms produce a slightly differentiated product.
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5. ECO1050 u06q1 Question 5 (Points: 2)
A market is classified as an oligopoly when this happens. (2 points).
1. A few firms compete.
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6. ECO1050 u06q1 Question 6 (Points: 3)
A perfectly competitive firm can do this. (3 points)
3. Sell all of its output at the prevailing market price.
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7. ECO1050 u06q1 Question 7 (Points: 2)
Because perfectly competitive firms are price takers, they face a demand that is what? (2 points).
2. Highly inelastic, but it is perfectly elastic in only a few limiting cases.
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8. ECO1050 u06q1 Question 8 (Points: 2)
For a perfectly competitive firm, marginal revenue is this. (2 points).
2. Equal to the price.
9. ECO1050 u06q1 Question 9 (Points: 3)
A firm maximizes its profit by producing the amount of output such that this happens. (3 points).
4. Marginal revenue equals marginal cost.
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10. ECO1050 u06q1 Question 10 (Points: 3)
For the perfectly competitive broccoli producers in California, the market demand curve for broccoli is what? (3 points).
4. Downward sloping.
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