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: a. monopoly. b. concentrated market. c. strategic market. d. competitive market. 3. Over which range of output is average revenue equal to price? a. 1 to 5 b. 3 to 7 c. 5 to 9 d. average revenue is equal to price over the whole range of output. 1
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4. Over what range of output is marginal revenue declining? a. None; marginal revenue is constant over the whole range of output. b. 1 to 6 c. 3 to 7 d. 7 to 9 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.
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QUIZ 3 - QUIZ 3 Recitation for Economics 2010-400...

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