Econ Ch 23 pt

Which of the following is false? a. The market demand curve in a perfectly competitive market is downward sloping. b. The firm's demand curve in a perfectly competitive market is horizontal. c. The firm's demand curve in a perfectly competitive market is perfectly elastic. d. Marginal revenue is equal to the change in total revenue divided by the change in quantity of output. e. none of the above

none

A decreasing-cost industry is characterized by

. a downward-sloping long-run supply curve.

Refer to Exhibit 23-3. Is it possible for this firm to produce "too much" in the short-run?

Any quantity above 44 units is too much.

Refer to Exhibit 23-10. Is it possible for this firm to produce "too much" output?

Any quantity above 6 units is too much.

All firms in an industry sell their product for the same price. This is a result of

There is not enough information to answer the question.

Which of the following is a characteristic of perfect competition?

buyers and sellers having all relevant information

Which of the following statements is false? a. In perfect competition, the market price is established at the intersection of the market demand and market supply curves. b. If Firm X does not strictly meet all the assumptions of the theory of perfect competition, but behaves as if it does, then the theory of perfect competition is relevant to it. c. The perfectly competitive firm's demand curve is horizontal at the market price. d. The theory of perfect competition is completely and accurately descriptive of most real-world firms.

d

In perfect competition, the firm's marginal revenue curve is a.perfectly elastic. b.the same as the firm's demand curve. c.the same as the firm's total revenue curve. d.a and b e.a and c

d. a and b

For a perfectly competitive firm, a. marginal revenue is equal to price. b. price is equal to marginal cost at the output level that maximizes profit. c. selling an additional unit of the good it produces increases total revenue by the price of the good. d. a and b e. a, b, and c

e. a,b, and c

Refer to Exhibit 23-1. The marginal revenue curve represented by the information in this table is

horizontal.