my answers to econ mid2

3 for any competitive market the supply curve is

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Unformatted text preview: itive market, the supply curve is closely related to the a. preferences of consumers who purchase products in that market. b. income tax rates of consumers in that market. c. firms’ costs of production in that market. d. interest rates on government bonds. 6. A market is competitive if (i) firms have the flexibility to price their own product. (ii) each buyer is small compared to the market. (iii) each seller is small compared to the market. a. b. c. d. (i) and (ii) only (i) and (iii) only (ii) and (iii) only (i), (ii), and (iii) 7. When a firm has little ability to influence market prices it is said to be in a a. competitive market. b. strategic market. c. thin market. d. power market. 8. In a competitive market, the actions of any single buyer or seller will a. have a negligible impact on the market price. b. have little effect on market equilibrium quantity but will affect market equilibrium price. c. affect marginal revenue and average revenue but not price. d. adversely affect the profitability of more than one firm in the market. 9. Because the goods offered for sale in a competitive market are largely the same, a. there will be few sellers in the market. b. there will be few buyers in the market. c. only a few buyers will have market power. d. sellers will have little reason to charge less than the going market price. 10. Which of the following is not a characteristic of a perfectly competitive market? a. Firms are price takers. b. Firms have difficulty entering the market. c. There are many sellers in the market. d. Goods offered for sale are largely the same. Table 14-1 Quantity Total Revenue 0 $0 1 $7 2 $14 3 $21 4 $28 11. Refer to Table 14-1. For a firm operating in a competitive market, the price is a. $0. b. $7. c. $14. d. $21. 12. Refer to Table 14-1. For a firm operating in a competitive market, the marginal revenue is a. $0. b. $7. c. $14. d. $21. 13. Refer to Table 14-1. For a firm operating in a competitive market, the average revenue is a. $21. b. $14. c. $7. d. $0. Table 14-2 Quantity 0 1 2 3 4 5 6 7 8 9 Price $13 $13 $13 $13 $13 $13 $13 $13 $13 $13 14. Refer to Table 14-2. The price and quantity relationship in the table is most likely that faced by a firm in a a. monopoly. b. concentrated market. c. competitive market. d. strategic market. 15. Refer to Table 14-2. Over which range of output is average revenue equal to price? a. 1 t o 5 b. 3 to 7 c. 5 t o 9 d. Average revenue is equal to price over the entire range of output. 16. Refer to Table 14-2. Over what range of output is marginal revenue declining? a. 1 t o 6 b. 3 to 7 c. 7 t o 9 d. None; marginal revenue is constant over the entire range of output. 17. Refer to Table 14-2. If the firm doubles its output from 3 to 6 units, total revenue will a. increase by less than $39. b. increase by exactly $39. c. increase by more than $39. d. It cannot be determined from the information provided. 18. Firms operating in competitive markets produce output levels where marginal revenue equals a. price. b. average revenue. c...
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This note was uploaded on 01/27/2014 for the course ECON 1010 taught by Professor Jonathanpritchett during the Fall '12 term at Tulane.

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