tutorial - market structure 1.doc

The figure represents a firm in a perfectly

  • No School
  • AA 1
  • 4

This preview shows page 3 - 4 out of 4 pages.

16) The figure represents a firm in a perfectly competitive market. If the price rises from P3to P4then output will increase by A) 0 units. B) 1 unit. C) 2 units. D) 3 units. 3
Image of page 3

Subscribe to view the full document.

17) In a perfectly competitive industry, the industry supply curve is the sum of the 18) Suppose the cost curves in the above figure apply to all firms in the industry. Then, if the initial price is P1, in the long run the market 19) Which of the following is LEASTlikely to be a monopoly? 20) A definingcharacteristic of a natural monopoly is that A) its demand curve slopes downward. B) it has no close substitutes. C) its average total cost curve slopes downward as it intersects the demand curve. D) it exists because of legal barriers to entry. Answer Key: 1) Answer: C 2) Answer: A 3) Answer: D 4) Answer: D 5) Answer: B 6) Answer: B 7) Answer: B 8) Answer: A 9) Answer: A 10) Answer: A 11) Answer: A 12) Answer: D 13) Answer: B 14) Answer: B 15) Answer: B 16) Answer: B 17) Answer: A 18) Answer: D 19) Answer: C 20) Answer: C 4
Image of page 4

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern