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15 gr 1 P:
12 kg: .
I 8. Of the following characteristics, which one applies exclusively to a perfectly competitive ﬁrm?
A. It always earns a proﬁt. 1? 2. MC ‘3 MEL B. It seeks only to minimize costs. C. It can sell all it wants to at the market price. D. It will never earn a proﬁt.
@t’has a narrow range of prices it can charge for its output. 9. If a perfectly competitive ﬁrm produces an output level where price is greater than marginal costs, then the ﬁrm should 3P > M C A. pay more to its variable factors of production. ‘\
B. pay more to its ﬁxed factors of production.
@ contract output to earn greater proﬁts or smaller losses. _ W33 -. w;
D. expand output to earn greater proﬁts or smaller losses. /
E. leave its output decision unchanged. @In a perfectly competitive market, marginal cost curve for a single ﬁrm is given by the equation: MC=600q,
ere q is the number of outputs sold. Market demand curve is P=lOOOQ~2Q, and SUpply is P=3Q, where Q is total market output, and P is the price. How many ﬁrms are there in the industry? A. 20 a. ~ “\Q 5 O ’3‘
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D. 20000 ‘- '- r7 ,.,. m l. country's economic welfare most directly depends on
what it can produce. - ‘ B. what its citizen consume. C. the production possibility curve. - D., how many goods and services it imports.
E. how many goods and services it exports. ' ...
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- Spring '07