Q9 Winnie - Question 1 0 out of 1 points An industry...

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Question 1 0 out of 1 points An industry comprised of a very large number of sellers producing a standardized product is known as: Selected Answer: [None Given] Correct Answer: pure competition. Question 2 0 out of 1 points Curve (4) in the above diagram is a purely competitive firm's: Selected Answer: [None Given] Correct Answer: total cost curve. Question 3 0 out of 1 points Answer the next question(s) on the basis of the following cost data for a firm that is selling in a purely competitive market. Refer to the above data. If the market price for this firm's product is $35, it will produce:
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Selected Answer: [None Given] Correct Answer: 6 units at a loss of $90. Question 4 0 out of 1 points In the short run a purely competitive firm will always make an economic profit if: Selected Answer: [None Given] Correct Answer: P > ATC. Question 5 0 out of 1 points The MR = MC rule can be restated for a purely competitive seller as P = MC because: Selected Answer: [None Given] Correct Answer: each additional unit of output adds exactly its constant price to total revenue. Question 6 0 out of 1 points A competitive firm in the short run can determine the profit-maximizing (or loss- minimizing) output by equating: Selected Answer: [None Given] Correct Answer: marginal revenue and marginal cost. Question 7 0 out of 1 points Suppose that an industry's long-run supply curve is downsloping. This suggests that: Selected Answer: [None Given] Correct Answer: it is a decreasing-cost industry. Question 8 0 out of 1 points
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Answer the next question(s) on the basis of the following cost data for a purely competitive seller: Refer to the above data. If product price is $25, the firm will: Selected Answer: [None Given] Correct Answer: shut down and incur a $50 loss. Question 9 0 out of 1 points In answering the next question(s), assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the above information. For a purely competitive firm, marginal revenue: Selected Answer: [None Given] Correct Answer: is a straight line, parallel to the horizontal axis. Question 10 0 out of 1 points Refer to the above diagram. At output level Q 1 :
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Selected Answer: [None Given] Correct Answer: neither productive nor allocative efficiency are achieved. Question 1 0 out of 1 points Answer the next question(s) on the basis of the following cost data for a firm that is selling in a purely competitive market. Refer to the above data. We can infer that, at zero output, this firm's total fixed, total variable, and total costs are: Selected Answer: [None Given] Correct Answer: $150, zero, and $150, respectively. Question 2 0 out of 1 points If at the MC = MR output, AVC exceeds price: Selected Answer: [None Given] Correct Answer: the firm should shut down in the short run. Question 3 0 out of 1 points Price is constant or given to the individual firm selling in a purely competitive market because: Selected Answer: [None Given] Correct Answer: each seller supplies a negligible fraction of total supply.
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Question 5 0 out of 1 points
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This note was uploaded on 02/10/2011 for the course ECON 201 taught by Professor Ron during the Spring '10 term at Edmonds Community College.

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Q9 Winnie - Question 1 0 out of 1 points An industry...

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