J baker micro final

Table 8-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units. What is the fixed cost of production?

$1,000

If the market price is $25 ina perfectly competitive market, the marginal revenue from selling the fifth unit is

$25

Table 8-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units If the market price of each camera case is $8 what is the firm's total revenue?

$3,200

Refer to figure 8-5. If market price is $20, what is the amount of the firm's profit?

$6,750

Refer to Figure 9-5. What area represents producer surplus under a monopoly?

0P1FH

Refer to figure 8-5. If the market price is $20, what is the firm's profit maximizing output?

1,350

Figure 9-4 shows the demand and cost curves for a monopolist. Refer to Figure 9-4. What is the difference between the monopoly output and the perfectly competitive output?

340 units

Table 8-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases Assume that output can only be increased in batches of 100 units. If the market price of each camera case is $8 what is the profit-maximizing quantity?

400 units

Figure 9-4 shows the demand and cost curves for a monopolist. Refer to Figure 9-4. What is the economically efficient output level?

940 units

Assume that the tuna fishing industry is perfectly competitive. Which of the following best characterizes the industry if, as demand for tuna increases, fishing boats have to go farther into the ocean to harvest tuna?

An increasing-cost industry

Refer to Figure 8-6. At price P3, the firm would

Break even

The Sherman Act prohibited

Collusive price agreements amount rival sellers.

Which of the following is not a characteristic of a monopolistically competitive market structure?

Each firm must react to the actions of other firms.

Refer to Figure 9-5. The deadweight loss due to a monopoly is represented by the area

FHE

Which of the following is not a characteristic of monopoly?

It is easy for new firms to enter the market.

Microsoft thought that the initial Xbox was sufficiently different from PS2 that it could charge a significantly higher price for the Xbox than Sony could charge for the PS2. Which of the following statements is implied by Microsoft's product positioning?

Microsoft believed that it had differentiated the Xbox sufficiently to insulate it from competition/ Consequently, it would be able to charge a higher price and increase its profits.

Refer to Figure 9-5. What is the area that represents consumer surplus under a monopoly?

P0P1F

Figure 9-1 above shows the demand and cost curves facing a monopolist. Refer to figure 9-1. The firm's profit maximizing price is

P3

The De Beers Company, one of the longest-lived monopolies, is facing increasing competition. One source of competition comes from people who resell their previously owned diamonds. Why is the De beers worried that people might resell their diamonds?

Previously owned diamonds are a close substitute for newly mined diamonds; their availability reduces De Beers' market power.

Table 8-1 Shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units If the market price of each camera case is 48 and the firm maximizes profit, what is the amount of the firm's profit or loss?

Profit of $400

Figure 9-1 above shows the demand and cost curves facing a monopolist. Refer to figure 9-1. To maximize profit the firm will produce

Q2

Refer to Figure 8-6. At price P3, the firm would produce

Q3 units

180

Refer to Figure 8-4. If the market price is $30, the firm's profit maximizing output level is

it should cut back its output to maximize profit

Refer to figure 8-1. If the firm is producing 700 units

The first important federal law passed to regulate monopolies in the United States was the

Sherman Act.

If we use a narrow definition of monopoly, then a monopoly is defined as a firm

That can ignore the actions of all other firms because it produces a product for which there are no close substitutes

Figure 9-4 shows the demand and cost curves for a monopolist. Refer to Figure 9-4. What is the difference between the monopoly's price and perfectly competitive industry's price

The monopoly's price is higher by $13.

Which of the following is a characteristic of an oligopoly market structure

There are a few firms.

Which of the following is not a characteristic of a perfectly competitive market structure?

There are restrictions on the exit of firms.

To maintain a monopoly the firm must have

a barrier to entry high enough to keep competing firms out.

A monopolist faces

a downward-sloping demand curve.

A perfectly competitive firm earns a profit when price is

above minimum average total cost

The demand for each seller's product in perfect competition is horizontal at the market price because

each seller is too small to affect market price

Perfect competition is characterized by all of the following except

heavy advertising by individual sellers.

If a perfectly competitive firm's price is above its average total cost, the firm

is earning a profit.

If a perfectly competitive firm's price is less than its average total cost but greater than its average variable cost, the firm

is incurring a loss

Refer to Figure 8-4. If the market price is $30 and the firm is producing output, what is the amount of the firm's profit or loss?

loss of $1,080

A perfectly competitive firm's supply curve is its

marginal cost curve above its minimum average variable cost curve

If, for a given output level, a perfectly competitive firm's price is less than its average variable cost, the firm

should shut down.

A monopoly is characterized by all of the following except

there are only a few sellers each selling a unique product.

a monopolist's profit-maximizing price and output correspond to the point on a graph

where marginal revenue equals marginal costa nd changing the price on the market demand curve for that output.

Refer to Figure 8-6. At price P1, the firm would produce

zero units.