Ex3AF09 - ECONOMICS 202 EXAM 3A FALL 2009 ANSWER THE NEXT 7...

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ECONOMICS 202 – EXAM 3A – FALL 2009 ANSWER THE NEXT 7 QUESTIONS USING THESE OPTIONS: 1. Oligopoly; 2. Perfect Competition; 3. Monopoly; 4. Monopolistic Competition 1. In which market structure(s) are both producers and consumers price-takers? a. 1; b. 2; c. 3; d. 1 and 2; e. 1 and 3 2. In ______ there are no barriers to entry, but in _____ there are barriers to entry. a. 2, 1; b. 2, 4; c. 4, 2; d. 1, 3; e. both a and b. 3. In this market structure there is a large number of sellers, the product of each seller has many good, but not perfect substitutes and in the long-run economic profits > 0. a. 1; b. 2; c. 3; d. 4; e. none above 4. In which market structure is it true that, “if TR = TC, then economic profits = 0, but normal profits > 0? a. 1; b. 2; c. 3; d. 4; e. all above 5. In the long-run in _____ , if the firm is producing the profit-maximizing quantity, P = MC. a. 1; b. 1 & 3; c. 2 & 4; d. 1, 2, 3; e. 2 6. In this industry an important feature is mutual interdependence among firms. a. 1; b. 2; c. 3; d. 4; e. none above 7. In this industry the firm’s demand curve is also the market demand curve. a. 1; b. 2; c. 3; d. 4; e. 2 & 3. 8. Ignoring the shut-down option, in perfect comp. the loss minimizing rule is: produce the quantity where: a. MC = ATC; b. MR = P; c. MC = MR; d. P = AVC; e. none above 9. In the long-run in perfect competition if a firm does not use the least-cost method of production that is available in the industry, the consequence is: a. economic profits are > 0, but are not maximized; b. economic profits are negative but not minimized; c. economic profits are zero; d. it fails and goes out of business; e. none above ANSWER THE NEXT QUESTION BY IDENTIFYING THE APPROPRIATE SET FROM THESE EIGHT OPTIONS: 1. P = MC; 2. P > MR; 3. P = AVC MIN ; 4. QS = QD; 5. Ec Profits > 0; 6. Ec Profits = 0; 7. AVC = S; 8. P = ATC MIN 10. The long-run equilibrium conditions in perfect competition are: a. 1, 3, 4, 6; b. 1, 4, 6, 8; c. 2, 4, 6, 7; d. 2, 4, 5, 8; e. 1, 3, 4, 6, 7. 11. In all market structures (environments) it is assumed the objective of the firm is to: a. maximize total revenue; b. minimize total costs; c. maximize marginal economic profits; d. maximize total economic profits; e. a, b and d. 12. Which of the following is an example of a barrier to entry in perfect competition: a. patents; b. economies of scale; c. exclusive government franchise to sell; d. all above; e. none above.
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2 ANSWER THE NEXT 6 QUESTIONS WITH REFERENCE TO THE ADJACENT DIAGRAM OF A
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Ex3AF09 - ECONOMICS 202 EXAM 3A FALL 2009 ANSWER THE NEXT 7...

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