sample final

sample final - Name: _ Date: _ 1. Economists would describe...

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Name: __________________________ Date: _____________ 1. Economists would describe the U.S. automobile industry as: A) purely competitive. B) an oligopoly. C) monopolistically competitive. D) a pure monopoly. 2. Which of the following statements applies to a purely competitive producer? A) It will not advertise its product. B) In long-run equilibrium it will earn an economic profit. C) Its product will have a brand name. D) Its product is slightly different from those of its competitors. 3. Price is constant or given to the individual firm selling in a purely competitive market because: A) the firm's demand curve is downsloping. B) of product differentiation reinforced by extensive advertising. C) each seller supplies a negligible fraction of total supply. D) there are no good substitutes for its product. Use the following to answer question 4: 4. Refer to the above diagram, which pertains to a purely competitive firm. Curve C represents: A) total revenue and marginal revenue. B) marginal revenue only. C) total revenue and average revenue. D) average revenue and marginal revenue. Page 1
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Use the following to answer question 5: 5. Refer to the above short-run data. Which of the following is correct? A) This firm will maximize its profit at 440 untis of output. B) Any level of output between 100 and 440 units will yield an economic profit. C) This firm's marginal revenue rises with output. D) Any level of output less than 100 units or greater than 440 units is profitable. 6. When a firm is maximizing profit it will necessarily be: A) maximizing profit per unit of output. B) maximizing the difference between total revenue and total cost. C) minimizing total cost. D) maximizing total revenue. Use the following to answer question 7: Answer the next question(s) on the basis of the following data confronting a firm: M a r g i n a l M a r g i n a l O u t p u t r e v e n u e c o s t 0 - - - - 1 $ 1 6 $ 1 0 2 1 6 9 3 1 6 1 3 4 1 6 1 7 5 1 6 2 1 7. Refer to the above data. If the firm's minimum average variable cost is $10, the firm's profit-maximizing level of output would be: A) 2. B) 3. C) 4. D) 5. Page 2
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8. Refer to the above diagram for a purely competitive producer. The firm will produce at a loss at all prices: A) above P 1 . B) above P 3 . C) above P 4 . D) between P 2 and P 3 . Use the following to answer question 9: 9. Refer to the above diagram. At the profit-maximizing output, the firm will realize: A) a loss equal to BCFG . B) a loss equal to ACFH . C) an economic profit of ACFH . D) an economic profit of ABGH . Use the following to answer question 10: 10. Refer to the above diagram. At the profit-maximizing output, total profit is: A) efbc . B) fgab . C)
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sample final - Name: _ Date: _ 1. Economists would describe...

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