APU ECO101 FULL COURSE [ ALL DISCUSSION ,ALL QUIZES, TERM PAPER ,MIDTERM AND FINAL EXAM

DISCUSSION

quiz 1

Question 1 of 10

10.0 Points

The branch of economics that examines the impact of choices on aggregates in the economy is:

A.positive economics.

B.normative economics.

C.macroeconomics.

D.microeconomics.

Question 2 of 10

10.0 Points

When we are forced to make choices we are facing the concept of:

A.ceteris paribus.

B.free goods.

C.scarcity.

D.the margin.

Question 3 of 10

10.0 Points

An economic system is the set of rules that define _______ and _______ .

A.resources; prices

B.who gets to vote; when elections will be held

C.market prices; factors of production

D.how an economy's resources are to be owned; how decisions about the resources are to be made

Question 4 of 10

10.0 Points

In a market capitalist economy:

A.factors of production are owned privately and decisions about their use are basically made by individuals.

B.factors of production are owned by the government but decisions about their use are made privately.

C.private ownership exists but decisions about resource allocation are usually made centrally by the government.

D.there is no role for the government.

Question 5 of 10

10.0 Points

The branch of economics that examines the choices of consumers and firms is:

A.positive economics.

B.normative economics.

C.macroeconomics.

D.microeconomics.

Question 6 of 10

10.0 Points

Scarcity in economics means:

A.not having sufficient resources to produce all the goods and services we want.

B.the wants of people are limited.

C.there must be poor people in rich countries.

D.economists are clearly not doing their jobs.

Question 7 of 10

10.0 Points

In a command socialist economy:

A.resources are government owned but individuals make some decisions over their use.

B.resources are government owned and government exercises broad power over their use.

C.resources are privately owned and individuals make decisions over their use.

D.resources are privately owned but government exercises broad power over their use.

Question 8 of 10

10.0 Points

The basic concern of economics is:

A.to keep business firms from losing money.

B.to prove that capitalism is better than socialism.

C.to study the choices people make.

D.to use unlimited resources to produce goods and services to satisfy limited wants.

Question 9 of 10

10.0 Points

Whenever a choice is made:

A.the value of all the other choices that could have been made is called opportunity cost.

B.normative economics is encountered.

C.the problem of "all other things unchanged" results.

D.the opportunity cost of that choice is value of the next best alternative

Question 10 of 10

10.0 Points

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

A.unlimited resources; economic systems

B.human interactions; limited resources

C.opportunity costs; choices

D.social behavior; scarcity

quiz 2

Question 1 of 10

10.0 Points

A shift of a demand curve to the right, all other things unchanged, will:

A.increase equilibrium price and quantity.

B.decrease equilibrium price and quantity.

C.decrease quantity and increase price.

D.increase quantity and decrease price.

Question 2 of 10

10.0 Points

If the current price is above the equilibrium price, we would expect:

A.quantity demanded to exceed quantity supplied.

B.upward pressure on price.

C.quantity supplied to exceed quantity demanded.

D.no change in the market price.

Question 3 of 10

10.0 Points

Demand is defined as:

A.an amount that is purchased at a specific price, given supply.

B.a schedule that establishes the price of a good.

C.a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged.

D.the amount that will be bought at a specific price.

Question 4 of 10

10.0 Points

The primary difference between a change in demand and a change in the quantity demanded is:

A.a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.

B.a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.

C.both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.

D.both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

Question 5 of 10

10.0 Points

A negative relationship between the quantity demanded and price is called the law of ______.

A.demand

B.diminishing marginal returns

C.market clearing

D.supply

Question 6 of 10

10.0 Points

The relationship between the quantity of a good or service sellers are willing and able to offer for sale and the independent variables that determine quantity is:

A.supply.

B.demand.

C.equilibrium.

D.disequilibrium.

Question 7 of 10

10.0 Points

A price below the equilibrium price will:

A.result in pressure for price to rise.

B.result in a surplus.

C.never be the case.

D.result in pressure for price to fall.

Question 8 of 10

10.0 Points

It is true that the equilibrium quantity will always go up if supply:

A.and demand both increase.

B.increases and demand decreases.

C.and demand both decrease.

D.decreases and demand remains unchanged.

Question 9 of 10

10.0 Points

The intersection of the supply and demand curves indicates:

A.the equilibrium solution in the market.

B.a surplus that will cause the price to fall.

C.a shortage that will cause the price to rise.

D.the quantity demanded exceeds the quantity supplied.

Question 10 of 10

10.0 Points

A decrease in supply means:

A.a shift to the left of the entire supply curve.

B.moving downward (to the left) along the supply curve with lower prices.

C.less will be demanded at every price.

D.more will be supplied at every price.

quiz 3

Question 1 of 10

10.0 Points

Demand is price inelastic if:

A.the price of the good responds slightly to a quantity change.

B.the demand curve shifts very little when a demand shifter changes.

C.the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price.

D.all of the above are true.

Question 2 of 10

10.0 Points

If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:

A.price elastic.

B.price inelastic.

C.unit price elastic.

D.upward sloping.

Question 3 of 10

10.0 Points

Which of the following will lead to a decrease in total revenue?

A.price goes up and demand is perfectly inelastic

B.price goes up and demand is price inelastic

C.price declines and demand is price elastic

D.price increases and demand is price elastic

Question 4 of 10

10.0 Points

If total revenue goes up when price falls, the price elasticity of demand is said to be:

A.price inelastic.

B.unit price elastic.

C.price elastic.

D.positive.

Question 5 of 10

10.0 Points

Price elasticity of demand measures the responsiveness of the change in:

A.quantity demanded to a change in price.

B.price to a change in quantity demanded.

C.slope of the demand curve to a change in price.

D.slope of the demand curve to a change in quantity demanded.

Question 6 of 10

10.0 Points

The price elasticity of demand is:

A.always positive.

B.always greater than 1.

C.usually equal to 1.

D.always negative.

Question 7 of 10

10.0 Points

A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is:

A.greater than zero but less than 1.

B.equal to 1.

C.greater than 1 but less than 3.

In D.greater than 3.

Question 8 of 10

10.0 Points

If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is:

A.unstable.

B.price inelastic.

C.price elastic.

D.unit price elastic.

Question 9 of 10

10.0 Points

The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is:

A.total revenue.

B.production possibilities.

C.elasticity.

D.slope.

Question 10 of 10

10.0 Points

The price elasticity of a good will tend to be greater:

A.the longer the relevant time period.

B.the fewer number of substitute goods available.

C.if it is a staple or necessity with few substitutes.

D.All of the above are true.

s

quiz 5

Part 1 of 1 - 100.0 Points

Question 1 of 10

10.0 Points

Average variable cost is:

A.the firm's variable cost per unit multiplied by the quantity.

B.total variable cost divided by quantity.

C.the difference between average total cost and total variable cost.

D.the difference between total cost and total variable cost.

Question 2 of 10

10.0 Points

Which of the following is (are) ?

A.Firms are organizations that produce goods and services.

B.Firms seek to maximize profits.

C.Firms seek to utilize factors of production in the most efficient way in order to maximize profits.

D.All of the above are .

Question 3 of 10

10.0 Points

For a restaurant:

A.labor and food would be variable factors of production.

B.a building would be a fixed factor of production in the short run.

C.fire insurance on a building would be a fixed factor of production.

D.A and B are .

Question 4 of 10

10.0 Points

Diminishing marginal returns means that:

A.each additional unit of an input used will decrease output.

B.each additional unit of an input used will increase output, but by smaller and smaller amounts.

C.each additional unit of an input used will increase output by larger and larger amounts.

D.the firm is maximizing profit.

Question 5 of 10

10.0 Points

When marginal cost is below average variable cost, average variable cost must be:

A.at its minimum.

B.at its maximum.

C.falling.

D.rising.

Question 6 of 10

10.0 Points

If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is:

A.$30.

B.$35.

C.$50.

D.$300.

Question 7 of 10

10.0 Points

In the long run:

A.all inputs are fixed.

B.inputs are neither variable nor fixed.

C.at least one input is variable and one input is fixed.

D.all inputs are variable.

Question 8 of 10

10.0 Points

A factor of production whose quantity can be changed during a particular period is a:

A.marginal factor of production.

B.fixed factor of production.

C.incremental factor of production.

D.variable factor of production.

Question 9 of 10

10.0 Points

Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:

A.constant marginal returns.

B.increasing marginal returns.

C.diminishing marginal returns.

D.negative marginal returns.

Question 10 of 10

10.0 Points

The sum of fixed and variable costs is:

A.total cost.

B.marginal cost.

C.variable cost.

D.average cost.

quiz 6

Question 1 of 10

10.0 Points

Perfect competition is characterized by:

A.rivalry in advertising.

B.fierce quality competition.

C.the inability of any one firm to influence price.

D.widely recognized brands.

Question 2 of 10

10.0 Points

An industry that contains a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rivals is prohibitively difficult is:

A.a duopoly.

B.a monopoly.

C.an oligopoly.

D.perfect competition.

Question 3 of 10

10.0 Points

Which of the following is true in a perfectly competitive market?

A.One unit of a good or service cannot be differentiated from any other on any basis.

B.Brand preferences exist but are very slight.

C.Barriers to entry are relatively strong.

D.Information is costly.

Question 4 of 10

10.0 Points

The assumptions of perfect competition imply that:

A.individuals in the market accept the market price as given.

B.individuals can influence the market price.

C.the price will be a fair price.

D.the price will be low.

Question 5 of 10

10.0 Points

Which of the following is true?

A.Price and average revenue are never equal.

B.Price and marginal revenue are seldom equal under conditions of perfect competition.

C.When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits.

D.Average revenue equals price times quantity.

Question 6 of 10

10.0 Points

If a firm possesses monopoly power, it means that:

A.the firm can set its own price based on its output decision.

B.the firm's demand curve is always elastic.

C.the firm is necessarily a monopoly.

D.A and C are true.

Question 7 of 10

10.0 Points

Marginal revenue:

A.is the slope of the average revenue curve.

B.equals the market price in perfect competition.

C.is the change in quantity divided by the change in total revenue.

D.is the price divided by the changes in quantity.

Question 8 of 10

10.0 Points

A natural monopoly exists whenever a single firm:

A.is owned and operated by the federal or local government.

B.is investor owned but granted the exclusive right by the government to operate in a market.

C.confronts economies of scale over the entire range of production that is relevant to its market.

D.has gained control over a strategic input of an important production process.

Question 9 of 10

10.0 Points

Which of the following is (are) true?

A.A monopoly firm is a price taker.

B.MR > P if the demand curve is downward sloping.

C.MR = MC is a profit-maximizing rule for any firm.

D.All of the above are true.

Question 10 of 10

10.0 Points

Perfect competition is important to study because it:

A.is a theoretical extreme used for analysis.

B.is a realistic model of a few key markets.

C.is a realistic model of many different markets.

D.avoids all real-world problems and complexities.

quiz 7

Part 1 of 1 - 100.0 Points

Question 1 of 10

10.0 Points

Monopolistic competition is an industry characterized by a:

A.small number of firms producing identical products, with barriers to entry for firms.

B.small number of firms producing similar products, with relatively easy entry for firms.

C.large number of firms producing similar products, with relatively easy entry for firms.

D.large number of firms producing identical products, with relatively easy entry for firms.

Question 2 of 10

10.0 Points

Imperfect competition is:

A.a market structure with no more than one firm in the industry.

B.an industry in which all firms are price takers.

C.a market structure where firms have a degree of monopoly power.

D.described by all of the above.

Question 3 of 10

10.0 Points

Imperfect competition includes:

A.monopolistic competition and oligopoly.

B.monopolistic competition and monopoly.

C.perfect competition and monopoly.

D.monopoly and oligopoly.

Question 4 of 10

10.0 Points

A firm in monopolistic competition maximizes its profit by producing at the level at which:

A.MC = ATC.

B.MC = AR.

C.MC = P.

D.MC = MR.

Question 5 of 10

10.0 Points

An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called:

A.perfect competition.

B.monopoly.

C.monopolistic competition.

D.oligopoly.

Question 6 of 10

10.0 Points

An oligopoly knows that its _______ affect(s) its _______ and that the _______ of its rivals will affect it.

A.actions; rivals; reactions

B.price changes ; total revenue in a positive way; reactions

C.actions rarely; rivals; actions

D.price increases; total revenue in the long run only; large but not small price changes

Question 7 of 10

10.0 Points

A concentration ratio is used to measure:

A.efficiency.

B.diseconomies of scale.

C.marginal cost.

D.market dominance.

Question 8 of 10

10.0 Points

An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its rivals and that its rivals' choices will affect it, is a(n):

A.monopoly.

B.oligopoly.

C.monopolistic competition.

D.perfect competition.

Question 9 of 10

10.0 Points

Price for a firm under monopolistic competition is:

A.equal to marginal revenue.

B.greater than marginal revenue.

C.less than marginal revenue.

D.greater than total revenue.

Question 10 of 10

10.0 Points

Unwritten or unspoken understandings through which firms collude to restrict competition are called:

A.cartelization.

B.oligopolization.

C.overt collusion.

D.tacit collusion.

quiz 1

Question 1 of 10

10.0 Points

The branch of economics that examines the impact of choices on aggregates in the economy is:

A.positive economics.

B.normative economics.

C.macroeconomics.

D.microeconomics.

Question 2 of 10

10.0 Points

When we are forced to make choices we are facing the concept of:

A.ceteris paribus.

B.free goods.

C.scarcity.

D.the margin.

Question 3 of 10

10.0 Points

An economic system is the set of rules that define _______ and _______ .

A.resources; prices

B.who gets to vote; when elections will be held

C.market prices; factors of production

D.how an economy's resources are to be owned; how decisions about the resources are to be made

Question 4 of 10

10.0 Points

In a market capitalist economy:

A.factors of production are owned privately and decisions about their use are basically made by individuals.

B.factors of production are owned by the government but decisions about their use are made privately.

C.private ownership exists but decisions about resource allocation are usually made centrally by the government.

D.there is no role for the government.

Question 5 of 10

10.0 Points

The branch of economics that examines the choices of consumers and firms is:

A.positive economics.

B.normative economics.

C.macroeconomics.

D.microeconomics.

Question 6 of 10

10.0 Points

Scarcity in economics means:

A.not having sufficient resources to produce all the goods and services we want.

B.the wants of people are limited.

C.there must be poor people in rich countries.

D.economists are clearly not doing their jobs.

Question 7 of 10

10.0 Points

In a command socialist economy:

A.resources are government owned but individuals make some decisions over their use.

B.resources are government owned and government exercises broad power over their use.

C.resources are privately owned and individuals make decisions over their use.

D.resources are privately owned but government exercises broad power over their use.

Question 8 of 10

10.0 Points

The basic concern of economics is:

A.to keep business firms from losing money.

B.to prove that capitalism is better than socialism.

C.to study the choices people make.

D.to use unlimited resources to produce goods and services to satisfy limited wants.

Question 9 of 10

10.0 Points

Whenever a choice is made:

A.the value of all the other choices that could have been made is called opportunity cost.

B.normative economics is encountered.

C.the problem of "all other things unchanged" results.

D.the opportunity cost of that choice is value of the next best alternative

Question 10 of 10

10.0 Points

Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______.

A.unlimited resources; economic systems

B.human interactions; limited resources

C.opportunity costs; choices

D.social behavior; scarcity

quiz 2

Question 1 of 10

10.0 Points

A shift of a demand curve to the right, all other things unchanged, will:

A.increase equilibrium price and quantity.

B.decrease equilibrium price and quantity.

C.decrease quantity and increase price.

D.increase quantity and decrease price.

Question 2 of 10

10.0 Points

If the current price is above the equilibrium price, we would expect:

A.quantity demanded to exceed quantity supplied.

B.upward pressure on price.

C.quantity supplied to exceed quantity demanded.

D.no change in the market price.

Question 3 of 10

10.0 Points

Demand is defined as:

A.an amount that is purchased at a specific price, given supply.

B.a schedule that establishes the price of a good.

C.a schedule that shows how much will be purchased at various prices during a particular period, all other things unchanged.

D.the amount that will be bought at a specific price.

Question 4 of 10

10.0 Points

The primary difference between a change in demand and a change in the quantity demanded is:

A.a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in the demand curve.

B.a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve.

C.both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different directions.

D.both a change in quantity demanded and a change in demand are movements along the demand curve, only in different directions.

Question 5 of 10

10.0 Points

A negative relationship between the quantity demanded and price is called the law of ______.

A.demand

B.diminishing marginal returns

C.market clearing

D.supply

Question 6 of 10

10.0 Points

The relationship between the quantity of a good or service sellers are willing and able to offer for sale and the independent variables that determine quantity is:

A.supply.

B.demand.

C.equilibrium.

D.disequilibrium.

Question 7 of 10

10.0 Points

A price below the equilibrium price will:

A.result in pressure for price to rise.

B.result in a surplus.

C.never be the case.

D.result in pressure for price to fall.

Question 8 of 10

10.0 Points

It is true that the equilibrium quantity will always go up if supply:

A.and demand both increase.

B.increases and demand decreases.

C.and demand both decrease.

D.decreases and demand remains unchanged.

Question 9 of 10

10.0 Points

The intersection of the supply and demand curves indicates:

A.the equilibrium solution in the market.

B.a surplus that will cause the price to fall.

C.a shortage that will cause the price to rise.

D.the quantity demanded exceeds the quantity supplied.

Question 10 of 10

10.0 Points

A decrease in supply means:

A.a shift to the left of the entire supply curve.

B.moving downward (to the left) along the supply curve with lower prices.

C.less will be demanded at every price.

D.more will be supplied at every price.

quiz 3

Question 1 of 10

10.0 Points

Demand is price inelastic if:

A.the price of the good responds slightly to a quantity change.

B.the demand curve shifts very little when a demand shifter changes.

C.the percentage change in quantity demanded is relatively small in response to a relatively large percentage change in price.

D.all of the above are true.

Question 2 of 10

10.0 Points

If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is:

A.price elastic.

B.price inelastic.

C.unit price elastic.

D.upward sloping.

Question 3 of 10

10.0 Points

Which of the following will lead to a decrease in total revenue?

A.price goes up and demand is perfectly inelastic

B.price goes up and demand is price inelastic

C.price declines and demand is price elastic

D.price increases and demand is price elastic

Question 4 of 10

10.0 Points

If total revenue goes up when price falls, the price elasticity of demand is said to be:

A.price inelastic.

B.unit price elastic.

C.price elastic.

D.positive.

Question 5 of 10

10.0 Points

Price elasticity of demand measures the responsiveness of the change in:

A.quantity demanded to a change in price.

B.price to a change in quantity demanded.

C.slope of the demand curve to a change in price.

D.slope of the demand curve to a change in quantity demanded.

Question 6 of 10

10.0 Points

The price elasticity of demand is:

A.always positive.

B.always greater than 1.

C.usually equal to 1.

D.always negative.

Question 7 of 10

10.0 Points

A men's tie store sold an average of 30 ties per day when the price was $5 per tie but sold 50 of the same ties per day when the price was $3 per tie. Hence, the absolute value of the price elasticity of demand is:

A.greater than zero but less than 1.

B.equal to 1.

C.greater than 1 but less than 3.

In D.greater than 3.

Question 8 of 10

10.0 Points

If the total revenue received by a firm does not change when it raises its price, this indicates that the demand for the firm's product is:

A.unstable.

B.price inelastic.

C.price elastic.

D.unit price elastic.

Question 9 of 10

10.0 Points

The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is:

A.total revenue.

B.production possibilities.

C.elasticity.

D.slope.

Question 10 of 10

10.0 Points

The price elasticity of a good will tend to be greater:

A.the longer the relevant time period.

B.the fewer number of substitute goods available.

C.if it is a staple or necessity with few substitutes.

D.All of the above are true.

s

quiz 5

Part 1 of 1 - 100.0 Points

Question 1 of 10

10.0 Points

Average variable cost is:

A.the firm's variable cost per unit multiplied by the quantity.

B.total variable cost divided by quantity.

C.the difference between average total cost and total variable cost.

D.the difference between total cost and total variable cost.

Question 2 of 10

10.0 Points

Which of the following is (are) ?

A.Firms are organizations that produce goods and services.

B.Firms seek to maximize profits.

C.Firms seek to utilize factors of production in the most efficient way in order to maximize profits.

D.All of the above are .

Question 3 of 10

10.0 Points

For a restaurant:

A.labor and food would be variable factors of production.

B.a building would be a fixed factor of production in the short run.

C.fire insurance on a building would be a fixed factor of production.

D.A and B are .

Question 4 of 10

10.0 Points

Diminishing marginal returns means that:

A.each additional unit of an input used will decrease output.

B.each additional unit of an input used will increase output, but by smaller and smaller amounts.

C.each additional unit of an input used will increase output by larger and larger amounts.

D.the firm is maximizing profit.

Question 5 of 10

10.0 Points

When marginal cost is below average variable cost, average variable cost must be:

A.at its minimum.

B.at its maximum.

C.falling.

D.rising.

Question 6 of 10

10.0 Points

If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is:

A.$30.

B.$35.

C.$50.

D.$300.

Question 7 of 10

10.0 Points

In the long run:

A.all inputs are fixed.

B.inputs are neither variable nor fixed.

C.at least one input is variable and one input is fixed.

D.all inputs are variable.

Question 8 of 10

10.0 Points

A factor of production whose quantity can be changed during a particular period is a:

A.marginal factor of production.

B.fixed factor of production.

C.incremental factor of production.

D.variable factor of production.

Question 9 of 10

10.0 Points

Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencing:

A.constant marginal returns.

B.increasing marginal returns.

C.diminishing marginal returns.

D.negative marginal returns.

Question 10 of 10

10.0 Points

The sum of fixed and variable costs is:

A.total cost.

B.marginal cost.

C.variable cost.

D.average cost.

quiz 6

Question 1 of 10

10.0 Points

Perfect competition is characterized by:

A.rivalry in advertising.

B.fierce quality competition.

C.the inability of any one firm to influence price.

D.widely recognized brands.

Question 2 of 10

10.0 Points

An industry that contains a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rivals is prohibitively difficult is:

A.a duopoly.

B.a monopoly.

C.an oligopoly.

D.perfect competition.

Question 3 of 10

10.0 Points

Which of the following is true in a perfectly competitive market?

A.One unit of a good or service cannot be differentiated from any other on any basis.

B.Brand preferences exist but are very slight.

C.Barriers to entry are relatively strong.

D.Information is costly.

Question 4 of 10

10.0 Points

The assumptions of perfect competition imply that:

A.individuals in the market accept the market price as given.

B.individuals can influence the market price.

C.the price will be a fair price.

D.the price will be low.

Question 5 of 10

10.0 Points

Which of the following is true?

A.Price and average revenue are never equal.

B.Price and marginal revenue are seldom equal under conditions of perfect competition.

C.When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits.

D.Average revenue equals price times quantity.

Question 6 of 10

10.0 Points

If a firm possesses monopoly power, it means that:

A.the firm can set its own price based on its output decision.

B.the firm's demand curve is always elastic.

C.the firm is necessarily a monopoly.

D.A and C are true.

Question 7 of 10

10.0 Points

Marginal revenue:

A.is the slope of the average revenue curve.

B.equals the market price in perfect competition.

C.is the change in quantity divided by the change in total revenue.

D.is the price divided by the changes in quantity.

Question 8 of 10

10.0 Points

A natural monopoly exists whenever a single firm:

A.is owned and operated by the federal or local government.

B.is investor owned but granted the exclusive right by the government to operate in a market.

C.confronts economies of scale over the entire range of production that is relevant to its market.

D.has gained control over a strategic input of an important production process.

Question 9 of 10

10.0 Points

Which of the following is (are) true?

A.A monopoly firm is a price taker.

B.MR > P if the demand curve is downward sloping.

C.MR = MC is a profit-maximizing rule for any firm.

D.All of the above are true.

Question 10 of 10

10.0 Points

Perfect competition is important to study because it:

A.is a theoretical extreme used for analysis.

B.is a realistic model of a few key markets.

C.is a realistic model of many different markets.

D.avoids all real-world problems and complexities.

quiz 7

Part 1 of 1 - 100.0 Points

Question 1 of 10

10.0 Points

Monopolistic competition is an industry characterized by a:

A.small number of firms producing identical products, with barriers to entry for firms.

B.small number of firms producing similar products, with relatively easy entry for firms.

C.large number of firms producing similar products, with relatively easy entry for firms.

D.large number of firms producing identical products, with relatively easy entry for firms.

Question 2 of 10

10.0 Points

Imperfect competition is:

A.a market structure with no more than one firm in the industry.

B.an industry in which all firms are price takers.

C.a market structure where firms have a degree of monopoly power.

D.described by all of the above.

Question 3 of 10

10.0 Points

Imperfect competition includes:

A.monopolistic competition and oligopoly.

B.monopolistic competition and monopoly.

C.perfect competition and monopoly.

D.monopoly and oligopoly.

Question 4 of 10

10.0 Points

A firm in monopolistic competition maximizes its profit by producing at the level at which:

A.MC = ATC.

B.MC = AR.

C.MC = P.

D.MC = MR.

Question 5 of 10

10.0 Points

An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called:

A.perfect competition.

B.monopoly.

C.monopolistic competition.

D.oligopoly.

Question 6 of 10

10.0 Points

An oligopoly knows that its _______ affect(s) its _______ and that the _______ of its rivals will affect it.

A.actions; rivals; reactions

B.price changes ; total revenue in a positive way; reactions

C.actions rarely; rivals; actions

D.price increases; total revenue in the long run only; large but not small price changes

Question 7 of 10

10.0 Points

A concentration ratio is used to measure:

A.efficiency.

B.diseconomies of scale.

C.marginal cost.

D.market dominance.

Question 8 of 10

10.0 Points

An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its rivals and that its rivals' choices will affect it, is a(n):

A.monopoly.

B.oligopoly.

C.monopolistic competition.

D.perfect competition.

Question 9 of 10

10.0 Points

Price for a firm under monopolistic competition is:

A.equal to marginal revenue.

B.greater than marginal revenue.

C.less than marginal revenue.

D.greater than total revenue.

Question 10 of 10

10.0 Points

Unwritten or unspoken understandings through which firms collude to restrict competition are called:

A.cartelization.

B.oligopolization.

C.overt collusion.

D.tacit collusion.

MIDTERM