Eco 203 chap 12 reading quiz
A perfectly competitive firm's marginal revenue?
is equal to price.
For a perfectly competitive firm, at profit maximization?
marginal revenue equals marginal cost.
The price of a seller's product in perfect competition is determined by?
market demand and market supply.
In a graph that illustrates a perfectly competitive firm, marginal revenue is?
the same as the firm's demand curve.
Assume the market for cage-free eggs is perfectly competitive. All else equal, as farmers find it less profitable to produce and sell cage-free eggs in this market?
the supply curve will shift to the left and the equilibrium price will increase.
Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21. Which of the following will happen? A) The firm's profits will increase. B) The firm will not sell any output. C) The firm's revenue will increase. D) The firm will sell more output than its competitors.
The firm will not sell any output.
Which of the following is a characteristic of an oligopolistic market structure?
There are few dominant sellers.
Which of the following is not a characteristic of a perfectly competitive market structure?
There are restrictions on exit of firms.
Marginal revenue is?
the change in total revenue divided by the change in the quantity of output.
A very large number of small sellers who sell identical products imply?
the inability of one seller to influence price.
Which of the following is not true for a firm in perfect competition? A) Profit equals total revenue minus total cost. B) Marginal revenue equals the change in total revenue from selling one more unit. C) Price equals average revenue. D) Average revenue is greater than marginal revenue.
Average revenue is greater than marginal revenue.
Which of the following is not a characteristic of a monopolistically competitive market structure?
Each firm must react to actions of other firms.
Which of the following is a characteristic of a monopoly? A) The firm has no control over price. B) It is easy for new firms to enter the market. C) The product is not unique. D) There is only one seller in the market.
There is only one seller in the market.
Which of the following is the best example of a perfectly competitive firm? A) United Parcel Service (UPS) B) a corn farmer in Illinois C) the Ford Motor Company D) a Taco Bell restaurant
a corn farmer in Illinois
Firms in perfect competition are price takers because?
each firm is too small relative to the market to be able to influence price