MC answers 2008 S2 - Microeconomics 1 Econ 1101 Answers to...

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Microeconomics 1 Econ 1101 Answers to Session 2 2008 Multiple Choice 1-b 2- a 3-d 4-a 5-a 6-b 7-d 8-b 9-b 10-c 11-a 12-a 13-c 14-b 15-a 16-d 17-a 18-c 19-a 20-a Question 1
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In an imperfectly competitive market, in which a firm has some market power: (a) The demand curve faced by a typical firm is perfectly elastic at the current market pnce (b) Marginal Revenue is less than Average Revenue at all levels ofproduction. (c) The demand curve faced by the typical firm is significantly more elastic for price increases than for price decreases. (d) For the typical firm, price equals Marginal Cost at the profit-maximising output level. Question 2 At the level of production at which short run average variable cost is minimized: (a) Marginal Cost equals Average Variable Cost (b) Marginal Cost is decreasing. (c) Average variable cost is less than Marginal Cost. (d) Average Cost is less than Average Variable Cost. Question 3 In a perfectly competitive market, the Marginal Revenue curve faced by a typical []fm; (a) is horizontal but lies above the demand curve (b) is horizontal but lies below the Average Revenue curve (c) Marginal Revenue is less than Average revenue at all output levels (d) is the same curve as the Average Revenue curve Page 2 Question 4 A fIrm operating in a perfectly competitive market will break-even in the short run
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This note was uploaded on 12/31/2011 for the course ECON 1101 taught by Professor Julia during the Three '08 term at University of New South Wales.

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MC answers 2008 S2 - Microeconomics 1 Econ 1101 Answers to...

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