HW 5 - ECO303.02 HW #5 Multiple-Choice Questions (1 pt per...

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Multiple-Choice Questions (1 pt per question) There is only one correct choice in the following questions. 1) A few sellers may behave if they operate in a perfectly competitive market if the market demand is: A) highly inelastic. B) very elastic. C) unitary elastic. D) composed of many small buyers. 2) If current output is less than the profit-maximizing output, which must be true? A) Total revenue is less than total cost. B) Average revenue is less than average cost. C) Average revenue is greater than average cost. D) Marginal revenue is less than marginal cost. E) Marginal revenue is greater than marginal cost. 3) The demand curve facing a perfectly competitive firm is A) the same as the market demand curve. B) downward-sloping and less flat than the market demand curve. C) downward-sloping and more flat than the market demand curve. D) perfectly horizontal. E) perfectly vertical. Consider the following diagram where a perfectly competitive firm faces a price of $40. Figure 8.1
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This note was uploaded on 12/14/2010 for the course ECO 303 taught by Professor Yunshanchan during the Fall '08 term at SUNY Stony Brook.

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HW 5 - ECO303.02 HW #5 Multiple-Choice Questions (1 pt per...

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