Question : 21) If the demand curve faced by a firm downward : 1384222

21) If the demand curve faced by a firm is downward sloping, we can reasonably believe that the

A) firm can influence the price of the product it sells.

B) firm will have no effect on the price of the product it sells.

C) firm must lower prices if it hopes to increase its profits.

D) firm’s contributions to total output of the product is insignificant.

E) firm has no control over the price of the product it sells but can vary the output.

22) The market demand curve for a perfectly competitive industry is typically

A) identical to the competitive firm’s demand curve.

B) downward sloping.

C) upward sloping.

D) infinitely elastic.

E) a rectangular hyperbola.

23) Under perfect competition, the demand curve facing an individual firm is

A) the same as the industry’s demand curve.

B) downward sloping.

C) upward sloping.

D) infinitely price elastic.

E) a rectangular hyperbola.

24) The perfectly elastic demand curve faced by a competitive firm means that

A) it could actually sell an infinite amount of output at the going price.

B) the firm could increase total revenue by increasing the price.

C) as the firm expands output its marginal revenue will fall.

D) total revenue is constant regardless of quantity produced.

E) the product’s price will be unaffected by any realistic change in the firm’s level of output.

25) The demand curve facing a perfectly competitive firm depends on

A) market demand alone.

B) market demand and the firm’s supply curve.

C) market demand and the market supply curve.

D) market supply alone.

E) the marginal cost of the firm.

26) When economists say that a perfectly competitive firm is a “quantity adjuster,” they mean that

A) it adjusts its output in response to changes in prices.

B) it can vary its output by an infinite amount.

C) it is not concerned with cost factors.

D) its marginal-cost curve coincides with its own demand curve.

E) changing the output level does not affect the costs of production.

27) When a firm is referred to as a “price taker,”

A) the firm initially takes price as given and tries to influence it through advertising.

B) the firm can alter its rate of production and sales without affecting the market price of the product.

C) the firm will be willing to sell an infinite quantity at the market price.

D) the demand curve that the firm faces is perfectly inelastic.

E) the firm can alter the market price as it changes its rate of production.

28) Total revenue (TR) for an individual firm in a perfectly competitive market equals

A) p × q.

B) (p × q)/q.

C) ?p × ?q.

D) ?q/?p.

E) ?(p × q)/?q.

29) Average revenue (AR) for an individual firm in a perfectly competitive market equals

A) p × q.

B) (p × q)/q.

C) ?p × ?q.

D) ?q/?p.

E) ?(p × q)/?q.

30) For any firm operating in any market structure, marginal revenue is defined as

A) total revenue divided by the number of units sold.

B) the change in total revenue resulting from the sale of an additional unit of the product.

C) the total amount received by the seller from the sale of a product.

D) the change in price resulting from the sale of an additional unit of the product.

E) price times quantity of the product sold.