Microeconomics Chapter 22

question

If marginal revenue exceeds marginal cost, a price-taker firm should

answer

a.) expand output.

question

Which of the following statements about the competitive price-taker firm represented in Figure 9-17 is false?

answer

a.) Short-run losses are minimized at output level q* because MR = MC there.

question

If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,

answer

c.) variable cost was greater than total revenue

question

If a price taker in a competitive market is going to maximize profits, he must

answer

c.) minimize the per-unit cost of producing the good.

question

Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. At Q = 1,000, the firm's profit amounts to

answer

b.) $1,000.

question

Which of the following is a characteristic of a competitive price-taker market?

answer

c.) There are many firms in the market, each producing a small share of total market output.

question

Refer to Figure 9-13. When price rises from P2 to P3, the firm finds that

answer

c.) expanding output to Q4 would leave the firm with losses.

question

If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect

answer

d.) competition to force producers to pass the lower production costs on to consumers in the long run.

question

The dynamic process of competition

answer

b.) puts the profit motive of sellers to work for buyers.

question

Which of the following is a residual reward that accrues to business decision makers who use resources so as to increase their value?

answer

c.) economic profit

1 of 10

question

If marginal revenue exceeds marginal cost, a price-taker firm should

answer

a.) expand output.

question

Which of the following statements about the competitive price-taker firm represented in Figure 9-17 is false?

answer

a.) Short-run losses are minimized at output level q* because MR = MC there.

question

If a profit-maximizing firm shuts down in the short run, it must be true that before the shutdown, at all positive output levels,

answer

c.) variable cost was greater than total revenue

question

If a price taker in a competitive market is going to maximize profits, he must

answer

c.) minimize the per-unit cost of producing the good.

question

answer

b.) $1,000.

question

Which of the following is a characteristic of a competitive price-taker market?

answer

c.) There are many firms in the market, each producing a small share of total market output.

question

Refer to Figure 9-13. When price rises from P2 to P3, the firm finds that

answer

c.) expanding output to Q4 would leave the firm with losses.

question

If occupational safety laws were changed so that firms no longer had to take expensive steps to meet regulatory requirements, we would expect

answer

d.) competition to force producers to pass the lower production costs on to consumers in the long run.

question

The dynamic process of competition

answer

b.) puts the profit motive of sellers to work for buyers.

question

Which of the following is a residual reward that accrues to business decision makers who use resources so as to increase their value?

answer

c.) economic profit

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Microeconomics Chapter 22

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