quiz204 - ECON1001 Principles of Economics Homework:...

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ECON1001 Principles of Economics Homework: Chapter 14 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. ____ 1. Which of the following firms is the closest to being a perfectly competitive firm? a. a hot dog vendor in New York b. Microsoft Corporation c. Ford Motor Company d. the campus bookstore ____ 2. Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $1.00 per cup. If Java Joe independently decreased its price per cup to $0.75, a. its sales would rise to 250 cups. b. its revenues would decrease. c. its revenues would remain constant at $200. d. the market price would fall to $0.75 as other sellers match Java Joe's price. ____ 3. If the market elasticity of demand for potatoes is -.3, then the individual farmer's elasticity of demand a. is also -.3. b. depends on how large a crop she produces. c. will range between -.3 and -1.0. d. will be infinite. ____ 4. Perfect competition may be defined as competition a. among price-taking sellers. b. among buyers with perfect information about the market. c. among sellers of high-quality products. d. in a market where prices adjust quickly to the long-run equilibrium. ____ 5. Free entry means that a. there are no costs of entering into an industry. b.
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This note was uploaded on 05/16/2010 for the course ECO BA 521 taught by Professor Dr.bridges during the Spring '10 term at Andrew Jackson.

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quiz204 - ECON1001 Principles of Economics Homework:...

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