200

False

A competitive firm will produce in the short run so long as its price exceeds its average fixed cost

False

A pure monopolist will maximize profits by producing at that output where price and marginal costs are equal

True

Because the equilibrium position of a prey competitive seller entails an quality of price and marginal costs, competition produces up to an efficient allocation of economic resources

False

In a maximizing profit a firm will always produce that output where total revenues are at a maximum

False

In a purely competitive industry competition centers more on advertising and sales promotion than on price

False

In the long run a pure monopolist must produce at that output where average total cost is at its minimum

False

In the long-run a competitive firm will always choose to shut down if product price is less than the lowest attainable average total cost

False

In the short run a pure monopolist will maximize profits by producing at that level of output here the difference between price an average total cost is at a maximum

True

Marginal cost is a measure of the alternative goods which society forgoes in using resources to produce an additional unit of some specific product

True

Marginal revenue is the addition to total revenue resulting from the sale of one more unit of output

True

Price and marginal revenue are identical for an individual purely competitive seller

False

The demand curve for a purely competitive industry is perfectly elastic, but the demand curve faced by individual firms in such an industry are downsloping

True

The total revenue curve of a competitive seller graph as a straight, upsloaping line

True

After all long-run adjustments have been completed, a firm in a competitive industry will produce that level of output where average total cost is at a minimum

False

Although individual purely competitive firms can influence the price of their product, these firms as a group cannot influence market price