ECO2023 QUIZ 3 - CHAPTER 14 A key characteristic of a...

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CHAPTER 14A key characteristic of a competitive market is that
Which of the following is nota characteristic of a competitive market?
In a perfectly competitive market,
Free entry means that:
Refer to Table 14-1.For a firm operating in a competitive market, the price is Table 14-1QuantityTotal Revenue0$01$72$143$214$28
Refer to Table 14-1.For a firm operating in a competitive market, the marginal revenue is Table 14-1QuantityTotal Revenue0$01$72$143$214$28
Refer to Table 14-1.For a firm operating in a competitive market, the average revenue is Table 14-1QuantityTotal Revenue0$01$72$143$214$28
If a competitive firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then:
If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then:
At the profit-maximizing level of output,
Refer to Table 14-4.What is the firm’s profit-maximizing strategy?Table 14-4QuantityTotal RevenueTotal Cost0$0$31$7$52$14$83$21$124$28$175$35$236$42$307$49$38
Refer to Table 14-6. What is the marginal cost of the 5th unit?Table 14-6John’s VineyardCOSTSREVENUESQuantityProducedTotalCostMarginalCostQuantityDemandedPriceTotalRevenueMarginalRevenue0$0--0$80--1$501$802$1022$803$1573$804$2174$805$2855$806$3656$807$4627$808$5828$80
Refer to Table 14-6. What is the total revenue from selling 7 units?Table 14-6John’s VineyardCOSTSREVENUESQuantityProducedTotalCostMarginalCostQuantityDemandedPriceTotalRevenueMarginalRevenue0$0--0$80--1$501$802$1022$803$1573$804$2174$805$2855$806$3656$807$4627$808$5828$80
Refer to Scenario 14-2. To maximize its profit, the firm shouldScenario 14-2Assume a certain firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $20 and its average total cost equals $25. The firm sells its output for $30 per unit.
Figure 14-5
When new firms have an incentive to enter a competitive market, their entry will
When firms have an incentive to exit a competitive market, their exit will
Refer to Figure 14-9. Assume that the market starts in equilibrium at point A in panel (b). An increase in demand from D0 to D1 will result inFigure 14-9

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