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QUIZ 3 - QUIZ 3 Recitation for Economics 2010-400...

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QUIZ 3 Recitation for Economics 2010-400 – Principles of Microeconomics Fall 2007 Name:____________________________ Recitation day and time: ___________ 1. A market is competitive if: (i) each buyer is small compared to the market. (ii) each seller is small compared to the market. (iii) firms have the flexibility to price their own product. a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. all of the above Use the information in the table below to answer questions 2 through 4. Quantity Price 1 13 2 13 3 13 4 13 5 13 6 13 7 13 8 13 9 13 2. The price and quantity relationship in the table is most likely that faced by a firm in a: 3. Over which range of output is average revenue equal to price? 1
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4. Over what range of output is marginal revenue declining? 5. Comparing marginal revenue to marginal cost (i) reveals the contribution of the last unit of production to total profit. (ii) is helpful in making profit maximizing production decisions. (iii) always reveals whether a firm is making an economic profit. (iv) tells a firm whether its fixed costs are too high. a. (i) and (ii) only b. (iii) only c. (ii) and (iii) only d. all of the above The graph below depicts the cost structure for a firm in a competitive market.
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