QUESTION 1 1. In a perfectly competitive market, a . no one seller can influence the price of the product. b . price exceeds marginal revenue for each unit sold. c . average revenue exceeds marginal revenue for each unit sold. d . All of the above are correct. 1.667 points QUESTION 2 1. Figure 12-17 The graphs in Figure 12-17 represent the perfectly competitive market demand and supply curves for the apple industry and demand and cost curves for a typical firm in the industry. Refer to Figure 12-17. The graphs depict a short-run equilibrium. How will this differ from the long-run equilibrium? (Assume this is a constant-cost industry.) The price will be higher in the long run than in the short run. The market supply curve will be further to the left in the long run than in the short run. Fewer firms will be in the market in the long run than in the short run. The firm's profit will be lower in the long run than in the short run.
1.667 points QUESTION 3 1. Consider a firm operating in a competitive market. The firm is producing 40 units of output, has an average total cost of production equal to $5, and is earning $240 economic profit in the short run. What is the current market price? a . $12 b . $10 c . $9 d . $11 1.667 points QUESTION 4 1. Monopoly firms have a . downward-sloping demand curves, so they can sell as much output as they desire at the market price. b . horizontal demand curves, so they can sell only a limited quantity of output at each price. c . downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve. d . horizontal demand curves, so they can sell as much output as they desire at the market price. 1.667 points QUESTION 5 1. A monopoly firm can sell 150 units of output for $10 per unit. Alternatively, it can sell 151 units of output for $9.90 per unit. The marginal revenue of the 151 st unit of output is a . $2.45. b . -$5.10. c . $5.10. d . -$0.10. 1.667 points QUESTION 6 1. A profit-maximizing monopolist charges a price of $12. The intersection of the marginal revenue and marginal cost curves occurs where output is 10 units and marginal cost is $6. Average total cost for 10 units of output is $5. What is the monopolist’s profit? a . $120 b . $100
c . $70 d . $60 1.667 points QUESTION 7 1. Figure 15-4 Refer to Figure 15-4 . If the monopoly firm is currently producing Q4 units of output, then a decrease in output will necessarily cause profit to a . remain unchanged. b . decrease. c . increase as long as the new level of output is at least Q2. d . None of the above is correct. The monopolist currently maximizing profits at Q4. 1.667 points QUESTION 8 1. Figure 15-4 Refer to Figure 15-4 . The marginal cost curve for a monopoly firm is depicted by curve a . B. b . C. c . A. d . D. 1.667 points QUESTION 9 1. Table 15-1 Quantity Price Total Revenue Average Revenue Marginal Revenue
1 $35 $35 2 $64 $32 $29 3 $29 4 $17 5 $23 $11 6 $120 7 $17 $-1 8 $-7 9 $99 $11 $-13 10 $80 $8 2.
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