review #2 - 1. Which of the following is the closest to...

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1. Which of the following 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 e. a public university
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2. Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup. If Java Joe independently decreased its price per cup to $1.50, a. its sales would rise to 250 cups *b. its revenue would decrease c. its revenue would rise d. its total revenue would equal $200 e. the market price will fall to $0.75 as other coffee sellers match the price cut
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3. In the short run under perfect competition, an individual firm will increase output as long as *a. marginal revenue exceeds marginal cost b. total revenue exceeds total cost c. price exceeds marginal revenue d. total revenue is rising e. marginal revenue is rising
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4. Output MC 1 $ 9 2 $ 6 3 $ 11 4 $ 15 5 $ 20 6 $ 28 Suppose that the market price is $20. What is the profit-maximizing level of output? a. 0 b. 1 c. 4 *d. 5 e. 6
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5. A perfectly competitive firm produces in a market where the prevailing price is $25. At its current output level of 10,000 units, its average total cost equals $15. The firm is earning a. a total money profit of $100,000
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review #2 - 1. Which of the following is the closest to...

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