c21sendout - 1. Which of the following is not...

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1. Which of the following is not characteristic of pure competition? A) price strategies by firms B) a standardized product C) no barriers to entry D) a larger number of sellers 2. Which of the following is characteristic of a purely competitive seller's demand curve? A) Price and marginal revenue are equal at all levels of output. B) Average revenue is less than price. C) Its elasticity coefficient is 1 at all levels of output. D) It is the same as the market demand curve. 3. If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: A) may be either greater or less than $5. B) will also be $5. C) will be less than $5. D) will be greater than $5. 4. Marginal revenue is the: A) change in product price associated with the sale of one more unit of output. B) change in average revenue associated with the sale of one more unit of output. C) difference between product price and average total cost. D) change in total revenue associated with the sale of one more unit of output. 5. Firms seek to maximize: A) per unit profit. B) total revenue. C) total profit. D) market share. 6. A competitive firm in the short run can determine the profit-maximizing (or loss-minimizing) output by equating: A) price and average total cost. B)
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This note was uploaded on 05/04/2011 for the course ECON 101 taught by Professor Lorenz during the Spring '11 term at Salt Lake Community College.

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c21sendout - 1. Which of the following is not...

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