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Question 1

0 out of 2 points

The following figure shows the marginal cost curve, average total costcurve, average variable cost curve, and marginal revenue curve for a firmfor different levels of output.Figure 9-3

Reference: Ref 9-3

In Figure 9-3, maimum profit per unit is e!ual to """"".#nswer

$orrect #nswer% &.F'

Question 20 out of 2 points

The competitive firm is (nown as a price ta(er because%

#nswer$orrect #nswer% #.

it accepts the mar(et price as agiven.

Question 30 out of 2 points

# competitive firm maimi)es profit at the output level where%#nswer

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$orrect#nswer%

&.the slope of the total revenue curve e!uals the slope of thetotal cost curve.

Question 42 out of 2 points

*esources arenot

free to move into and out of an industr+ when%#nswer

$orrect #nswer% $.an incumbent firm has an eclusive governmentpatent.

Question 50 out of 2 points

*efer to Figure 9-. iven that the mar(et price is /, the firm will beoperating at a loss of """"".#nswer

$orrect #nswer% .1/

Question 6

0 out of 2 points

The following figure shows the marginal cost curve, average total costcurve, average variable cost curve, and marginal revenue curve for a firmfor different levels of output.Figure 9-3

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Reference: Ref 9-3

*efer to Figure 9-3. #ssuming that price at 0* is 0, the profit maimi)inglevel of output for the firm is """"".

#nswer

$orrect #nswer% .4$ where marginal cost e!uals the 0price

Question 70 out of 2 points

#s long as there is free entr+ into a mar(et%#nswer

$orrect #nswer% $.economic profits are not sustainable.

Question 80 out of 2 points

The short-run suppl+ curve for a perfectl+ competitive industr+ is%#nswer

$orrect#nswer%

.derived b+ summing the individual firms5 marginal cost curveshori)ontall+.

Question 90 out of 2 points

6hich of the following will occur in response to an unepected increase indemand in a constant-cost, competitive industr+7#nswer

$orrect #nswer% $.The output will increase with input prices remainingunchanged

Question 100 out of 2 points

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6hich of the following is true of a long-run competitive e!uilibrium7#nswer

$orrect#nswer%

&.Inputs emplo+ed in the industr+ cannot earn more in otherindustries.

Question 110 out of 2 points

6hich of the following is a condition for long-run e!uilibrium in acompetitive industr+7#nswer

$orrect #nswer% $.8ach firm in the industr+ is earning )ero economicprofit.

Question 122 out of 2 points

The demand curve of a perfectl+ competitive firm is determined b+%#nswer

$orrect #nswer% .the price ta(ing behavior in themar(et.

Question 132 out of 2 points

In the long run, if the input procurement prices increase as the outputsupplied b+ firms in an industr+ rises%#nswer

$orrect #nswer% .the firms are operating in an increasing-costindustr+.

Question 140 out of 2 points

For a perfectl+ competitive firm, the demand curve%#nswer

$orrect #nswer% &.coincides with the marginal revenuecurve.

Question 150 out of 2 points

#t the profit-maimi)ing level of output in Figure 9-3, the profit of the firm ise!ual to the area given b+ """"".#nswer

$orrect #nswer% $.*6

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Question 162 out of 2 points

The following figure shows the marginal cost curve, average total costcurve, average variable cost curve, and marginal revenue curve for a firmfor different levels of output.Figure 9-3

Reference: Ref 9-3

*efer to Figure 9-3. #t the profit-maimi)ing level of output%#nswer

$orrect #nswer% &.the firm is earning economicprofit.

Question 17

0 out of 2 points

ero economic profit occurs when%#nswer

$orrect #nswer% .price e!uals long-run average cost.

Question 180 out of 2 points

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The following figure shows the total cost and total revenue for a firm when itprices its products at : and 0.Figure 9-

Reference: Ref 9-1

*efer to Figure 9-. #t a price of 0, the profit maimi)ing level of outputfor the firm is _____.#nswer

$orrect #nswer% #.4

Question 190 out of 2 points

The assumptions of perfect competition """"".#nswer

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$orrect #nswer% $.do not readil+ appl+ to most real-worldmar(ets

Question 200 out of 2 points

The competitive firm maimi)es its profit b+ operating at the point where""""" and price is greater than average variable cost.#nswer

$orrect #nswer% $.marginal cost e!uals price

Question 210 out of 2 points

The demand for corn has increased over the past few decades to satisf+ theincreasing demand from the food and ethanol industries. The primar+beneficiaries of an epansion in the output of corn are owners of farmland

suitable for corn production. 6hat can +ou conclude about the nature of thecorn industr+7#nswer

$orrect #nswer% .The corn industr+ is an increasing-cost industr+.

Question 220 out of 2 points

The following figure shows the total cost and total revenue for a firm when it

prices its products at : and 0.Figure 9-

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Reference: Ref 9-1

*efer to Figure 9-. 6hen the firm is producing the profit-maimi)ing level ofoutput at a price of 0%#nswer

$orrect #nswer% #.total fied costs are 4#.

Question 230 out of 2 points

The following figure shows the total cost and total revenue for a firm when itprices its products at : and 0.

Figure 9-

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Reference: Ref 9-1

In Figure 9-, if the mar(et price fell to : the firm would%#nswer

$orrect #nswer% .decrease production to 4; and would be earning a normalreturn.

Question 242 out of 2 points

*efer to Figure 9-. The total variable cost for the firm at output level 4& is""""".#nswer

$orrect #nswer% #.&T

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#ssume that coffee shops operate in a perfectl+ competitive industr+. #single coffee shop, &ric( = >ortar, decides to charge an entrance fee inaddition to charges for its coffee and pastr+. 6hich of the following is mostli(el+ to happen7#nswer

$orrect

#nswer%

#.&ric( = >ortar will not be able to sustain the etra charges ascustomers will move to coffee shops that are cheaper.

Question 282 out of 2 points

The slope of the long-run suppl+ curve in a decreasing-cost industr+ is """"".#nswer

$orrect #nswer% $.negative

Question 292 out of 2 points

#ccording to the """"" principle, firms that do not approimate profitmaimi)ation will not succeed in competitive mar(ets.#nswer

$orrect #nswer% $.survivor

Question 300 out of 2 points

# perfectl+ competitive firm faces a hori)ontal demand curve, which impliesthat%

#nswer

$orrect #nswer% .the firm cannot affect price b+ an+ action itta(es.

Question 310 out of 2 points

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The following figure shows the marginal cost curve, average total costcurve, average variable cost curve, and marginal revenue curve for a firmfor different levels of output.Figure 9-3

Reference: Ref 9-3

#t the output level of 4$ in Figure 9-3, average profit per unit of output ise!ual to """"".#nswer

$orrect #nswer% $.

Question 320 out of 2 points

6hich one of the following is notan assumption of the competitive model7

#nswer

$orrect #nswer% .8conomies of scale