Question : 102) The firm’s supply curve its A) marginal cost curve above : 1241196

 

102) The firm’s supply curve is its

A) marginal cost curve above the average variable cost curve.

B) marginal cost curve below the average variable cost curve.

C) average variable cost curve above the marginal cost curve.

D) average total cost curve above the marginal cost curve.

E) marginal revenue curve above the average total cost curve.

 

103) Which of the following will increase a perfectly competitive seller’s short-run supply and shift the firm’s short-run supply curve rightward?

A) an increase in the market price

B) a decrease in average fixed costs

C) a decrease in marginal cost

D) Both answers A and B are correct.

E) Both answers A and C are correct.

104) The four market types are

A) perfect competition, imperfect competition, monopoly, and oligopoly.

B) oligopoly, monopsony, monopoly, and imperfect competition.

C) perfect competition, monopoly, monopolistic competition, and oligopoly.

D) oligopoly, oligopolistic competition, monopoly, and perfect competition.

E) perfect competition, imperfect competition, monopoly, and duopoly.

 

105) A requirement of perfect competition is that

i.many firms sell an identical product to many buyers.

ii.there are no restrictions on entry into (or exit from) the market, and established firms have no advantage over new firms.

iii.sellers and buyers are well informed about prices.

A) i only

B) i and ii

C) iii only

D) i and iii

E) i, ii, and iii

 

106) A perfectly competitive firm is a price taker because

A) many other firms produce the same product.

B) only one firm produces the product.

C) many firms produce a slightly differentiated product.

D) a few firms compete.

E) it faces a vertical demand curve.

107) The demand curve faced by a perfectly competitive firm is

A) horizontal.

B) vertical.

C) downward sloping.

D) upward sloping.

E) U-shaped.

 

108) For a perfectly competitive corn grower in Nebraska, the marginal revenue curve is

A) downward sloping.

B) the same as its demand curve.

C) upward sloping.

D) U-shaped.

E) vertical at the profit maximizing quantity of production.

 

109) A perfectly competitive firm maximizes its profit by producing at the point where

A) total revenue equals total cost.

B) marginal revenue is equal to marginal cost.

C) total revenue is equal to marginal revenue.

D) total cost is at its minimum.

E) total revenue is at its maximum.

 

110) If the market price is lower than a perfectly competitive firm’s average total cost, the firm will

A) immediately shut down.

B) continue to produce if the price exceeds the average fixed cost.

C) continue to produce if the price exceeds the average variable cost.

D) shut down if the price exceeds the average fixed cost.

E) shut down if the price is less than the average fixed cost.

111) One part of a perfectly competitive trout farm’s supply curve is its

A) marginal cost curve below the shutdown point.

B) entire marginal cost curve.

C) marginal cost curve above the shutdown point.

D) average variable cost curve above the shutdown point.

E) marginal revenue curve above the demand curve.

 

 

 

 

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