micro test 2

Which of the following is a characteristic of a perfectly competitive industry?

all of the above

Which of the following market structures use the rule MR=MC to determine the profit maximizing rate of output?

both perfectly competitive and monopolistic industries

Which of the following is the best example of a good that is produced by a perfectly competitive firm?

Wheat

Please refer to the following diagram describing a perfectly competitive firm. In the long run, we would expect firms to _____ this industry, driving the price of this good ______. (MC is at 30 and 90 and ATC is between 60 and 70)

enter, lower

Please refer to the following table displaying data for a monopolist. What is the profit maximizing rate of output? Output Price Total Cost 0 $27 $20 1 $26 $30 2 $25 $35 3 $24 $45 4 $23 $65 5 $22 $95 6 $21 $135 7 $20 $185

not 2

Please refer to the following table displaying data for a monopolist. If this monopolist wanted to maximize economic profits, what price should they charge? Output Price Total Cost 0 $27 $20 1 $26 $30 2 $25 $35 3 $24 $45 4 $23 $65 5 $22 $95 6 $21 $135 7 $20 $185

not 27, 25

Please refer to the following diagram describing a perfectly competitive firm. If this firm chose to maximize economic profit, it would produce ___. (MC is at 30 and over 90 act is between 60 and 70 and the price is at 90

not Less than 4 units. not 40, not 100, not 180

Please refer to the following diagram describing a perfectly competitive firm. Based on this diagram, a firm that maximizes economic profit will earn ____. '(mc in between 2o and 30 and 90 and act between 60 and 70) price at 50

60,, This firm is profitable

Which of the following is most accurate?

All the above

Please refer to the following diagram describing data for a perfectly competitive producer. Assuming that this firm seeks to maximize economic profit, how much profit will they earn? (mc at 20 and 50 act between 40 and 50 price at 30

Less than $50, more than 4 units

In some cases, a firm may operate even if it loses money. This strategy is referred to as:

Loss minimization.

Which of the following statements most accurately describes a pure monopoly.

There is usually no substitute for the monopolist's product.

Which of the following best described the demand curve faced by the monopolist?

it is highly inelastic.

Please refer to the following incomplete data describing a perfectly competitive firm. Assuming that this firm operated at its profit maximizing rate of output, how much economic profit would it earn? Output Total Cost Marginal Cost Average Total Cost Marginal Revenue Total Revenue 0 $100 na na na $0 1 $120 $20 $120.00 $50 $50 2 $150 $30 ? $50 ? 3 $190 $40 $63.33 $50 $150 4 $240 ? $60.00 $50 $200 5 $300 $60 $60.00 $50 $250 6 $370 $70 $61.67 ? $300 7 $450 $80 $64.29 $50 $350

less than 0, how many units? not 5 units

Which of the following is a good example of a monopolist?

nfl

If a perfectly competitive firm cannot be profitable, they may still consider operating as long as ______

not Marginal revenue exceeds fixed costs

Please refer to the following table displaying data for a monopolist. What is this monopolist's fixed costs? Output Price Total Cost 0 $250 $220 1 $225 $230 2 $200 $235 3 $175 $245 4 $150 $265 5 $125 $290 6 $100 $320 7 $75 $360

$220

Please refer to the following table displaying cost and revenue data for a monopolist. If this monopolist seeks to maximize economic profit, how many units should it produce? Output Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Total Cost 0 $120 $0 na $100 na na 1 $110 $110 $110 $120 $20 $120 2 $100 $200 $90 $150 $30 $75 3 $90 $270 $70 $190 $40 $63 4 $80 $320 $50 $240 $50 $60 5 $70 $350 $30 $300 $60 $60 6 $60 $360 $10 $370 $70 $62 7 $50 $350 -$10 $450 $80 $64

...

Please refer to the data below representing possible output scenarios for a perfectly competitive firm. Assume that the price of this good is $80. If this was your firm and you maximized profit, how much economic profit would you earn? Output Total Cost 0 $100 1 $150 2 $180 3 $204 4 $284 5 $420 6 $630

36, 4 units for units

Please refer to the following diagram displaying data for a perfectly competitive producer. If this firm operated and sought to maximize profits, it would produce _________

4 units

Please refer to the following table displaying data for a monopolist. What is the profit maximizing rate of output for this monopolist? Output Price Total Cost 0 $250 $220 1 $225 $230 2 $200 $235 3 $175 $245 4 $150 $265 5 $125 $290 6 $100 $320 7 $75 $360

5 units

Please refer to the following table displaying cost and revenue data for a monopolist. If this monopolist seeks to maximize economic profit, how much economic profit will this firm earn? Output Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Total Cost 0 $120 $0 na $100 na na 1 $110 $110 $110 $120 $20 $120 2 $100 $200 $90 $150 $30 $75 3 $90 $270 $70 $190 $40 $63 4 $80 $320 $50 $240 $50 $60 5 $70 $350 $30 $300 $60 $60 6 $60 $360 $10 $370 $70 $62 7 $50 $350 -$10 $450 $80 $64

80

Please refer to the following table displaying cost and revenue data for a monopolist. If this monopolist seeks to maximize economic profit, what price should it charge for this good? Output Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Total Cost 0 $120 $0 na $100 na na 1 $110 $110 $110 $120 $20 $120 2 $100 $200 $90 $150 $30 $75 3 $90 $270 $70 $190 $40 $63 4 $80 $320 $50 $240 $50 $60 5 $70 $350 $30 $300 $60 $60 6 $60 $360 $10 $370 $70 $62 7 $50 $350 -$10 $450 $80 $64

80