Econ2030 Test2 pg2

Econ2030 Test2 pg2 - 40 MC ATC 35(k I AVC E I 20 l I 13 r...

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Unformatted text preview: 40 MC ATC 35 (k I AVC E I 20 l I 13 r 15 gr 1 P: I 12 kg: . I I 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‘ «9 9WC’ M 1-1/7. \4, (9'?) 0 Low Q 200 ,.... . 2000 '\-’>‘~‘x ©1141-2133" 3150 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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