CFA_R16_MC
A price taker faces a _ demand curve. A. Horizontal B. Vertical
A
Can sell entire output at market price but nothing at a higher price. A. Price Taker B. Price Searcher
A
Characteristics of an oligopoly least likely include: A) identical products. B) interdependence among competitors. C) significant barriers to entry.
A
Face a perfectly elastic (horizontal) demand curve. A. Price Taker B. Price Searcher
A
In the long run, entry will occur in a perfectly competitive market as long as ______ A. economic profits are greater than zero. B. there are no barriers to entry. C. demand is increasing. D. price is greater than short-run average variable cost.
A
Oligopolistic competition is characterized by: A. High Barriers to Entry B. Low Barriers to Entry
A
Perfect Competition is characterized by: A. Homogeneous Products B. Differentiated Products C. Either
A
Sellers may gain from price discrimination by charging ______. A. higher prices to groups of customers with more inelastic demand B. higher prices to groups of customers with more elastic demand
A
Small output compared to the whole market. A. Price Taker B. Price Searcher
A
The market supply curve is equal to the ______. A. horizontal sum of all the firms' marginal cost curves B. vertical sum of all the firms' average total cost curves C. horizontal sum of all the firms' average total cost curves
A
Which of the following most accurately describes why firms under monopolistic competition face elastic demand for their products? A) The availability of many close substitutes. B) Allocative efficiency. C) High barriers to entry.
A
With perfect price discrimination means there is no __. A. consumer surplus B. producer surplus
A
Suppose there are 50 firms in a perfectly competitive market and each maximizes profit at 50 units of output when market price is $15.00 per unit. One of the points on the market supply curve must be at ______. A. price = $15 and quantity supplied = 2,500 B. price = $15 and quantity supplied = 25,000 C. price = $3.33 and quantity supplied = 2,500
A (50 firms times 50 units)
A price taker faces a demand curve that ______ A. has an elasticity of zero. B. is perfectly elastic. C. is perfectly inelastic.
B
Can choose to charge higher prices but will sell less. A. Price Taker B. Price Searcher
B
Face a downward sloping demand curve. A. Price Taker B. Price Searcher
B
Has some price setting power. A. Price Taker B. Price Searcher
B
In a purely competitive market, economic losses indicate that ______ A. the firms in the industry are not minimizing their costs; they should expand output in order to more fully realize the economies of scale in the industry. B. some firms have miscalculated, producing goods that are less valuable than the resources used to make them. C. some firms are using unfair tactics to harm others.
B
In the short run, price searchers maximize profits by producing output where marginal revenue (MR): A) equals marginal costs (MC) and charging a price based on the average total cost (ATC) curve. B) equals marginal costs (MC) and charging a price based on the demand curve. C) is greater than marginal costs (MC) and charging a price based on the demand curve.
B
Monopolistic Competition is characterized by: A. Homogeneous Products B. Differentiated Products C. Either
B
Perfect competition is characterized by: A. High Barriers to Entry B. Low Barriers to Entry
B
Price discrimination refers to paying unequal wages to workers based on gender. A. True B. False
B
Price takers ______ A. alter market output to change price and maximize their profits. B. cannot influence market price. C. are able to sell a greater quantity if and only if they lower the price.
B
Sellers may gain from price discrimination by charging ______. A. lower prices to groups of customers with more inelastic demand B. lower prices to groups of customers with more elastic demand
B
When a price-discriminating monopolist offers a senior discount, its total profit is likely to be ______. A. lower than the total profit obtained from a single-price policy B. higher than the total profit obtained from a single-price policy C. the same as the total profit obtained from a single-price policy
B
With perfect price discrimination, the market demand curve becomes the ______. A. average revenue curve B. marginal revenue curve C. marginal cost curve
B
Monopolistic Competition is characterized by: A. A Single Firm B. Few Firms C. Many Firms
C
Oligopolistic Competition is characterized by: A. Homogeneous Products B. Differentiated Products C. Either
C
Which of the following regarding monopolistic competition is most accurate? A) Zero barriers to entry and exit exist. B) There are very few independent sellers. C) Each firm produces a differentiated product.
C
