202EX3AF10forPost

202EX3AF10forPost - ECONOMICS 202 EXAM 3A FALL 2010 1. The...

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ECONOMICS 202 – EXAM 3A – FALL 2010 1. The profit-maximizing rule is applicable in all market structures except : a.perfect competition; b. monopolistic competition; c. pure monopoly; d. oligopoly; e. none above. 2. In this market structure, the industry is dominated by a few large sellers: a.perfect competition; b. monopolistic competition; c. pure monopoly; d. oligopoly; e. none above. 3. Consumers are assumed to be “price-takers” in: a.perfect competition; b. monopolistic competition; c. pure monopoly; d. oligopoly; e. all above. 4. The market structures(s) in which positive economic profits are possible in the long-run is (are): a. monopolistic competition; b. pure monopoly; c. oligopoly; d. all above; e. b and c. 5. One of the most important features of _______ is mutual interdependence among sellers. a.perfect competition; b. monopolistic competition; c. pure monopoly; d. oligopoly; e. all above. 6. In this market structure, the product of one seller is a perfect substitute for the product of all other sellers: a.perfect competition; b. monopolistic competition; c. oligopoly; d. all above; e. none above. 7. In which of the following must normal profits be positive in the long-run? a.perfect competition; b. monopolistic competition; c. pure monopoly; d. oligopoly; e. all above. 8. In the long-run in ______, the equilibrium quantity = the allocatively efficient quantity. a.perfect competition; b. monopolistic competition; c. pure monopoly; d. all above; e. none above. 9. In _____ the product may be either homogeneous or differentiated. a.perfect competition; b. monopolistic competition; c. pure monopoly; d. oligopoly; e. none above. Answer the next 3 questions using the following information about a perfectly competitive firm in the short-run: Q = 10; MC = 10; TC = 120; AVC = 8; TR = 100. 10. This firm should ______ its level of output. a. increase; b. decrease (but not shut-down); c. not change; d. shut-down; e. not enough information to know if or how it should change output. 11. At Q = 10, economic profits = : a. -10; b. -20; c. -40; d. 20; e. not enough information to know because the values of explicit and implicit costs are unknown.
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202EX3AF10forPost - ECONOMICS 202 EXAM 3A FALL 2010 1. The...

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