perfect competition is characterized by all of the following exceptA. brand differentiationB. sellers are price takersC. homogeneous productsD. a horizontal demand curve for individual firms sellers


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Both individual buyers and sellers in perfect competitionA. can influence the market price by their own individual actionsB. have to take the market price as a givenC. have the market price dictated to them by governmentD. can greatly influence the market price by joining with a few of their competitors
which of the following is the best example of a perfectly competitive industryA. the military airplane marketB. electricity marketC. the athletic tennis shoe marketD. the wheat market
the demand curve for an individual firm in a perfectly competitive market is A. horizontalB. verticalC. downward slopingD. the same as market demand
If, for the last unit of a good produced by a perfectly competitive firm, MR>MC, then in producing it, the firmA. added more to the total revenue than it added to total costB. minimized its lossesC. added more to the total costs than it added to total revenueD. maximized it economic profit
which of the following describes the difference between the market demand curve for a perf competitive industry and the demand curve for a firm in this industryA. the firm"s demand curve is the market demand curveB. the market demand curve is downward sloping; the firm"s demand curve is a horizontal lineC. the market demand curve is horizontal; the firms demand curve is downwards slopingD. the market demand curve is downward sloping; the firm"s demand curve is a vertical line
for a perfectly competitive firm, at profit maximizationA. total revenue is maximizedB. production must occur where average cost is minimizedC. market price exceeds marginal costD. marginal revenue equals marginal cost
to maximize profit, a perfectly competitive firmA. should produce the quantity of output that results In the greatest difference between marginal revenue and marginal costB. should produce the quantity of output that results in the greatest difference between total revenue and total costC. should sell the quantity of output determined by the interaction between industry demand and supplyD. should sell the quantity of output that results in a value for total revenue that is equal to total cost
in the short-run, a firm that is operating at a loss has 2 optionsA. to go out of business or declare bankrupcy B. to adopt new technology or change the size of its physical plant C. to reduce output or reduce its variable costsD. to shut down temporarily or continue to produce
a perfectly competitive firm produces 3000 units of a good at a total cost of 36,000. the price of each good is 10. calculate short run profit or lossA. profit 30,000B. profit 6,000C. loss 6,000D. there is insufficient information to answer the question
Producing where marginal revenue equals marginal cost is equivalent to producing whereA. average total cost equals average revenueB. total profit is maximizedC. average fixed cost is minimizedD. total revenue is equal to total cost
Ben"s Peanut Shoppe suffers a short-run loss. Ben will not choose to shut down ifA. his shoppe"s total revenue exceeds his variable costB. his shoppe"s total revenue exceeds his fixed costC.his shoppe"s total revenue exceeds his capital costD. his shoppe"s total revenue exceeds his implicit cost
when a firm experiences a positive technological changeA. the firm is able to produce more output using the same inputs, or the same output using fewer inputsB. the price of a share of the firm"s stock risesC. the value of the firm"s assets risesD. the firm will hire additional workers in order to increase production
implicit costs can be defined asA. total cost minus fixed costB. accounting profit minus explicit costC. the deferred cost of productionD. the non-monetary opportunity cost of using the firm"s own resources
the explicit cost of production is also calledA. accounting costB. direct costC. overhead costD. variable cost
to improve delivery, joe"s pizza emporium made a change that involved taking better account of traffic to avoid delays in delivering pizzas. this is an example ofA. a reduction in fixed costsB. increasing marginal returnsC. positive technological changeD. diseconomies of sale
Jayanthi moves her yoga studio from her home to a space she rents in Oakland, California. Holding everything else constant, as a result of this move,A. her economic cost riseB. her explicit cost falls and her implicit cost rise C. her opportunity cost risesD. her implicit cost falls and her explicit cost rises
a characteristic of the long run isA. there are both fizzed and variable inputsB. plant capacity cannot be increased or decreasedC. all inputs can be variedD. there are fixed inputs
which of the following is the best example of a short-run adjustmentA. your local walmart hires two more associatesB. smith university completed negotations to acquire a large piece of land to build its new libraryC. toyota builds a new assembly plant in texasD. a local bakery purchases another commercial oven
Which of the following statements is false?A. in the short run: total cost = fixed cost + variable costB. variable costs are costs that change as output changesC. an explicit cost is a nonmonetary opportunity costD. in the long run there are no fixed costs
If a producer is not able to expand its plant capacity immediately, it isA. operating in the short-runB. losing moneyC. operating in the long runD. bankrupt
the law of diminishing marginal returns statesA. average total costs of production initially fall and after some point start to rise at a decreasing rate as output increasesB. that in the presence of a fixed factor, at some point average product of labor starts to fall as more and more variable inputs are addedC. that at some point, adding more of a variable input to a given amount of a fixed input will cause the marginal product of the variable input to declineD. that at some point, adding more of a fixxed input to a given amount of variable inputs will cause the marginal product of the variable input to decline
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