Refer to the over diagram. The quantitative distinction between locations A and C for reducing the price native P1 to P2 measures:

marginal cost.

You are watching: A firm reaches a break-even point (normal profit position) where

marginal revenue.

monopoly price.

a welfare or effectiveness loss.

1 point out   

Question 2

1.  

   The above diagram portrays:

a competitive firm that should shut under in the brief run.

the equilibrium place of a competitive for sure in the long run.

a competitive firm the is establish an economic profit.

the loss-minimizing position of a competitive certain in the short run.

1 point out   

Question 3

1.  

(Consider This) roughly what percentage of start-up that company in the U.S. Go bankrupt in ~ the an initial two years?

9.5

10.2

22

53

1 clues   

Question 4

1.  

(Consider This) The typical life span of a U.S. Organization is approximately:

2 years.

9.5 years.

10.2 years.

22 years.

1 points   

Question 5

1.  

(Last Word) DeBeers Consolidated Mines industries about:

55 percent that the world's rough-cut diamonds.

80 percent of the world's rough-cut diamonds.

45 percent that the world's rough-cut diamonds.

33 percent that the world's rough-cut diamonds.

1 clues   

Question 6

1.  

(Last Word) In a recent plan change, DeBeers has decided to:

sell off its whole inventory of diamonds.

abandon its plan of profit maximization.

purchase the entire output of various other mines and withhold diamonds from the sector to bolster diamond prices.

promote "premium diamonds" and also other luxury goods as preferable come synthetics.

1 points   

Question 7

1.  

(Last Word) Oil wells and seasonal resorts will regularly shut down temporarily because:

prices for their calculation temporarily fall listed below their average variable prices of production.

fixed expenses temporarily rise, making manufacturing unprofitable.

variable expenses for pumping oil and operating will fluctuate significantly.

government regulations need seasonal shutdowns for maintenance purposes.

1 point out   

Question 8

1.  

A constant-cost market is one in which:

a greater price per unit will not result in an increased output.

if 100 units deserve to be created for $100, climate 150 can be created for $150, 200 for $200, and also so forth.

the demand curve and therefore the unit price and also quantity sold rarely change.

the total cost of creating 200 or 300 systems is no greater than the expense of creating 100 units.

1 clues   

Question 9

1.  

A decreasing-cost sector is one in which:

contraction that the market will decrease unit costs.

input prices autumn or modern technology improves together the sector expands.

the long-run it is provided curve is perfect elastic.

the long-run it is provided curve is upsloping.

1 points   

Question 10

1.  

A firm reaches a break-even point (normal profit position) where:

marginal revenue cut the horizontal axis.

marginal cost intersects the average variable expense curve.

total revenue equals complete variable cost.

total revenue and total price are equal.

1 clues   

Question 11

1.  

A natural monopoly occurs when:

long-run average costs decline continuously with the range of demand.

a firm own or controls some resource essential to production.

long-run average costs rise repetitively as output is increased.

economies of scale are acquired at relatively low level of output.

1 point out   

Question 12

1.  

A purely competitive certain is precluded from making economic profit in the lengthy run because:

it is a "price taker."

its need curve is perfectly elastic.

of unimpeded entry to the industry.

it produce a distinguished product.

1 points   

Question 13

1.  

A purely competitive firm's short-run supply curve is:

perfectly elastic at the minimum average full cost.

upsloping and equal to the section of the marginal expense curve that lies above the mean variable cost curve.

upsloping and also equal to the portion of the marginal price curve the lies over the average complete cost curve.

upsloping only once the sector has constant costs.

1 points   

Question 14

1.  

A completely monopolistic firm:

has no entry barriers.

faces a downsloping need curve.

produces a product or business for which over there are countless close substitutes.

earns only a common profit in the long run.

1 point out   

Question 15

1.  

Allocative effectiveness is completed when the manufacturing of a great occurs where:

P = minimum ATC.

P = MC.

P = minimum AVC.

total revenue is same to TFC.

1 clues   

Question 16

1.  

An increasing-cost market is linked with:

a perfectly elastic long-run it is provided curve.

an upsloping long-run supply curve.

a perfectly inelastic long-run it is provided curve.

an upsloping long-run need curve.

1 point out   

Question 17

1.  

An industry consisted of of 40 firms, none of which has more than 3 percent that the complete market for a identified product is an example of:

monopolistic competition.

oligopoly.

pure monopoly.

pure competition.

1 point out   

Question 18

1.  

An industry made up of a small variety of firms, each of i m sorry considers the potential reactions of the rivals in making price-output decisions is called:

monopolistic competition.

oligopoly.

pure monopoly.

pure competition.

1 point out   

Question 19

1.  

An industry consisted of of a very big number the sellers producing a standardized product is recognized as:

monopolistic competition.

oligopoly.

pure monopoly.

pure competition.

1 points   

Question 20

1.  

An industry consisted of of 4 firms, each with around 25 percent that the total market for a product is an instance of:

monopolistic competition.

oligopoly.

pure monopoly.

pure competition.

1 point out   

Question 21

1.  

An control not controlled pure monopolist will maximize profits by developing that calculation at which:

P = MC.

P = ATC.

MR = MC.

MC = AC.

1 clues   

Question 22

1.  

Creative destruction is:

the procedure by which huge firms buy up tiny firms.

the procedure by which new firms and brand-new products change existing leading firms and also products.

a term coined numerous years earlier by Adam Smith.

is applicable come planned economies, however not to market economies.

1 point out   

Question 23

1.  

Economists usage the term imperfect competition come describe:

all sectors which create standardized products.

any sector in which over there is no nonprice competition.

a pure monopoly only.

those markets which are not completely competitive.

1 points   

Question 24

1.  

Firms look for to maximize:

per unit profit.

total revenue.

total profit.

market share.

1 clues   

Question 25

1.  

For a completely competitive firm full revenue:

is price times quantity sold.

increases by a constant absolute quantity as output expands.

graphs as a straight upsloping heat from the origin.

has all of these characteristics.

1 point out   

Question 26

1.  

If a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue:

may it is in either better or less than $35.

will likewise be $35.

will be much less than $35.

will be higher than $35.

1 points   

Question 27

1.  

If a pure monopolist is producing at that calculation where P = ATC, then:

its financial profits will certainly be zero.

it will certainly be realizing losses.

it will certainly be producing less 보다 the profit-maximizing level the output.

it will be realizing an financial profit.

1 point out   

Question 28

1.  

In the short run the individual competitive firm's it is provided curve is the segment the the:

average variable cost curve lying listed below the marginal price curve.

marginal price curve lying above the average variable expense curve.

marginal revenue curve lying listed below the need curve.

marginal cost curve lying between the average full cost and average variable expense curves.

1 clues   

Question 29

1.  

In which of the complying with industry structures is the entry of new firms the most difficult?

pure monopoly

oligopoly

monopolistic competition

pure competition

1 points   

Question 30

1.  

In which of the complying with market structures is there clear-cut mutual interdependence v respect to price-output policies?

pure monopoly

oligopoly

monopolistic competition

pure competition

1 clues   

Question 31

1.  

Marginal revenue is the:

change in product price linked with the sale of one an ext unit of output.

change in average revenue associated with the revenue of one an ext unit of output.

difference between product price and average full cost.

change in total revenue associated with the revenue of one much more unit the output.

1 point out   

Question 32

1.  

Price distinguish is:

always legal.

always illegal.

only illegal if it damages consumers more than non-discrimination.

only illegal if used to to decrease or get rid of competition.

1 point out   

Question 33

1.  

Price discrimination ad to:

selling a provided product for various prices in ~ two different points in time.

any price over that i beg your pardon is same to a minimum average full cost.

the selling of a given product at different prices that carry out not reflect cost differences.

the difference in between the prices a purely competitive seller and also a purely monopolistic seller would charge.

1 clues   

Question 34

1.  

Pure monopoly refers to:

any industry in which the demand curve come the for sure is downsloping.

a standardization product being created by countless firms.

a solitary firm creating a product because that which there space no close substitutes.

a huge number the firms developing a identified product.

1 point out   

Question 35

1.  

Resources are effectively allocated as soon as production occurs where:

marginal cost equals median variable cost.

price is same to average revenue.

price is same to marginal cost.

price is equal to mean variable cost.

1 points   

Question 36

1.  

Suppose a pure monopolist is charging a price of $12 and also the associated marginal revenue is $9. We for this reason know that:

demand is inelastic at this price.

the for sure is maximizing profits.

total revenue is increasing.

total revenue is in ~ a maximum.

1 clues   

Question 37

1.  

The mr = MC rule applies:

to that company in all varieties of industries.

only as soon as the certain is a "price taker."

only to monopolies.

only to completely competitive firms.

1 point out   

Question 38

1.  

The need curve confronted by a pure monopolist:

may be either much more or less elastic 보다 that confronted by a solitary purely compete firm.

is much less elastic than that confronted by a solitary purely compete firm.

has the same elasticity together that faced by a single purely vain firm.

is much more elastic 보다 that confronted by a solitary purely competitive firm.

1 clues   

Question 39

1.  

The demand curve in a purely competitive market is _____, if the need curve to a single firm in that industry is _____.

perfectly inelastic, perfectly elastic

downsloping, perfect elastic

downsloping, perfect inelastic

perfectly elastic, downsloping

1 points   

Question 40

1.  

The demand schedule or curve challenged by the individual purely competitive certain is:

relatively elastic, that is, the elasticity coefficient is better than unity.

perfectly elastic.

relatively inelastic, that is, the elasticity coefficient is much less than unity.

perfectly inelastic.

1 points   

Question 41

1.  

The gains to monopolists from working out market power:

exceed the losses to consumers in syndicate markets, bring about a net acquire to society.

equal the casualty to consumers in syndicate markets, resulting in no net readjust for society.

are much less than the losses to consumer in monopoly markets, leading to a net loss to society.

create smaller sized deadweight casualty than take place in completely competitive industries.

1 clues   

Question 42

1.  

The marginal revenue curve the a completely competitive firm:

lies listed below the firm's demand curve.

is downsloping due to the fact that price must be lessened to sell much more output.

is horizontal in ~ the sector price.

has every one of these characteristics.

1 point out   

Question 43

1.  

The primary pressure encouraging the entry of new firms right into a completely competitive industry is:

normal profits earned by firms currently in the industry.

economic profits earned by firms already in the industry.

government subsidies because that start-up firms.

a desire to carry out goods for the betterment the society.

1 points   

Question 44

1.  

The principle that a certain should create up to the point where the marginal revenue from the revenue of an extra unit of output is equal to the marginal expense of creating it is known as the:

output-maximizing rule.

profit-maximizing rule.

shut-down rule.

break-even rule.

1 points   

Question 45

1.  

The process by which new firms and brand-new products replace existing leading firms and also products is called:

monopolistic competition.

mergers and also acquisitions.

process innovation.

creative destruction.

1 clues   

Question 46

1.  

The hatchet allocative effectiveness refers to:

the level of calculation that synchronizes with the intersection the the MC and also AVC curves.

minimization of the AFC in the manufacturing of any good.

the production of the product-mix most wanted by consumers.

the manufacturing of a great at the shortest average total cost.

1 point out   

Question 47

1.  

The hatchet productive performance refers to:

any short-run equilibrium place of a competitive firm.

the production of the product-mix most preferred by consumers.

the production of a good at the lowest average full cost.

fulfilling the condition P = MC.

1 clues   

Question 48

1.  

When a purely competitive firm is in long-run equilibrium:

marginal revenue above marginal cost.

price equals marginal cost.

total revenue exceeds complete cost.

minimum average full cost is less than the product price.

1 clues   

Question 49

1.  

Which of the following problems is true for a purely competitive certain in long-run equilibrium?

P > MC = minimum ATC.

P > MC > minimum ATC.

P = MC = minimum ATC.

P

1 points   

Question 50

1.  

Which that the adhering to distinguishes the quick run from the lengthy run in pure competition?

Firms deserve to enter and also exit the sector in the lengthy run, but not in the short run.

Firms effort to maximize earnings in the lengthy run, yet not in the short run.

Firms use the MR=MC ascendancy to maximize earnings in the quick run, but not in the lengthy run.

The amount of labor hired deserve to vary in the lengthy run, yet not in the short run.

1 points   

Question 51

1.  

Which of the complying with is a characteristics of pure monopoly?

close substitute products

barriers come entry

the absence of sector power

"price taking"

1 clues   

Question 52

1.  

Which of the adhering to is characteristics of a pure monopolist's demand curve?

Average revenue is less than price.

Its elasticity coefficient is 1 at all levels the output.

Price and also marginal revenue are equal at all levels of output.

It is the very same as the market demand curve.

1 points   

Question 53

1.  

Which the the complying with is correct?

Both completely competitive and monopolistic firms space "price takers."

Both completely competitive and also monopolistic firms space "price makers."

A completely competitive firm is a "price taker," while a monopolist is a "price maker."

A completely competitive certain is a "price maker," if a monopolist is a "price taker."

1 point out   

Question 54

1.  

Which of the complying with is not a obstacle to entry?

patents

X-inefficiency

economies that scale

ownership of important resources

1 points   

Question 55

1.  

Which of the complying with is true worrying purely vain industries?

There will be economic losses in the long run due to the fact that of cut-throat competition.

Economic revenues will persist in the long run if consumer demand is solid and stable.

In the quick run, firms may incur economic losses or earn financial profits, however in the lengthy run they earn normal profits.

There are financial profits in the long run, yet not in the short run.

1 points   

Question 56

1.  

Which the the complying with statements is correct?

The need curve for a purely competitive certain is perfectly elastic, however the need curve because that a completely competitive market is downsloping.

The need curve because that a purely competitive certain is downsloping, yet the need curve for a completely competitive sector is perfectly elastic.

The need curves space downsloping because that both a purely competitive firm and also a purely competitive industry.

The need curves room perfectly elastic for both a purely competitive firm and also a purely competitive industry.

1 point out   

Question 57

1.  

Which that the following statements is correct?

The long-run supply curve because that a completely competitive increasing-cost market will be upsloping.

The long-run it is provided curve because that a completely competitive increasing-cost industry will be perfect elastic.

The long-run it is provided curve for a purely competitive industry will be much less elastic 보다 the industry's short-run supply curve.

The long-run supply curve for a purely competitive decreasing-cost industry will it is in upsloping.

1 point out   

Question 58

1.  

Which of the complying with will not hold true because that a competitive certain in long-run equilibrium?

P equals AFC

P equals minimum ATC

MC equates to minimum ATC

P equals MC

1 points   

Question 59

1.  

With respect to the pure monopolist's demand curve it deserve to be claimed that:

the more powerful the obstacles to entry, the an ext elastic is the monopolist's demand curve.

price exceeds marginal revenue at every outputs better than 1.

demand is perfectly inelastic.

marginal revenue equals price at every outputs.

1 clues   

Question 60

1.  

X-inefficiency refers to a case in i beg your pardon a firm:

is not as technologically steady as it can be.

encounters diseconomies that scale.

fails to realize every existing economic climates of scale.

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fails to attain the minimum average full costs attainable at each level the output.