ch13 - ch13 class name student ID Multiple Choice Identify...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
class name student ID Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. Which of the following is not a characteristic of a competitive market? a . Buyers and sellers are price takers. b . Each firms sells a virtually identical product. c . Free entry is limited. d . Each firm chooses an output level that maximizes profits. ____ 2. Firms that operate in perfectly competitive markets try to a . maximize revenues. b . maximize profits. c . equate marginal revenue with average total cost. d . Both b and c are correct. ____ 3. Suppose that a firm operating in perfectly competitive market sells 200 units of output at a price of $3 each. Which of the following statements is correct? i) Marginal revenue equals $3. ii) Average revenue equals $600. iii ) Average revenue exceeds marginal revenue, but we don’t know by how much. a. i) only b. iii) only c. i) and ii) only d. i), ii), and iii) ____ 4. Which of the following statements is correct? a . For all firms, marginal revenue equals the price of the good. b . Only for competitive firms does average revenue equal the price of the good. c . Marginal revenue can be calculated as total revenue divided by the quantity sold. d . Only for competitive firms does average revenue equal marginal revenue. ____ 5. Charlene sells cotton candy. The cotton candy industry is competitive. Charlene hires a business consultant to analyze her company’s financial records. The consultant recommends that Charlene increase her production. The consultant must have concluded that Charlene’s
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 4

ch13 - ch13 class name student ID Multiple Choice Identify...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online