Econ exam 2 (not mine)
if the xyz company can sell 4 units per week at $10 per unit and 5 units per week at $9 per unit, the marginal revenue of the fifth unit is $5
true
if three or four homogeneous oligopolists collie, the resulting price and production outcomes will be similar to those of pure monopoly
true
it will be profitable for a firm to hire additional units of any resource up to the point at which its MRP is equal to its MRC
true
price and marginal revenue are identical for an individual purely competitive seller
true
the demand curve of a monopolistically competitive producer is less elastic than that of a purely competitive producer
true
the economic profits earned by monopolistically competitive sellers are zero in the long run
true
In a purely competitive industry competition centers more on advertising and sales promotion than on price
false
In maximizing profit a firm will always produce that output where total revenues are at a maximum
false
Pure monopolists always earn economic profits
false
because of the ability to influence price, a pure monopolist can increase price and increase volume of sales simultaneously
false
because of their large scale level of production pure monopolists over allocate resources to their industry by producing beyond the P=MC output
false
in the long run a pure monopolist must produce at that output where average total cost is at a minimum
false
in the long run monopolistically competitive firms make normal profits because they are forced to operate at the minimum point on their average total cost curve
false
in the short run a pure monopolist will charge the highest price the market will bear for its product
false
price discrimination is illegal in the US under antitrust regulations
false
price discrimination occurs every time a firm sells a good for two different prices
false
the demand curve for a purely competitive industry is perfectly elastic, but the demand curves faced by individual firms in such an industry are downsloping
false
the demand for loanable funds is perfectly elastic.
false
the monopolistically competitive seller maximizes profits by equating price and marginal cost
false
the supply of loanable funds is perfectly elastic
false
Demand is the active and supply the passive determinant of land rent
true
MRP is derived from the law of diminishing returns
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
a competitive firm will produce in the short run so long as its price exceeds its average fixed cost
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
true
because the equilibrium position of a purely competitive seller entails an equality of price and marginal costs, competition produces up to an efficient allocation of economic resources
true
cost- benefit analysis is frequently difficult to apply because it is difficult to quantify the full benefits of a public good or service
true
demand is the active and supply the passive determinant of land rent
true
generally speaking, the larger the number of firms in an oligopolistic industry, the more difficult it is for those firms to collude
true