Please open the following attachment give price quote, my name is Malaika Ratley, i have 30.00 credit toward an assignment that wasn't completed on my account. Document Preview: FINAL EXAM INCLUDE...

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FINAL EXAM (PART 1)
1. Which of the following statements applies to a purely competitive producer?
A. It will not advertise its product.
B. In long-run equili
ium it will earn an economic profit.
C. Its product will have a
and name.
D. Its product is slightly different from those of its competitors.


Answer: A)



2. Which of the following is characteristic of a purely competitive seller's demand
curve?
A. Price and marginal revenue are equal at all levels of output.
B. Average revenue is less than price.
C. Its elasticity coefficient is 1 at all levels of output.
D. It is the same as the market demand curve.

Answer: A)



3. A competitive firm in the short run can determine the profit-maximizing (or loss
minimizing)
output by equating:
A. price and average total cost.
B. price and average fixed cost.
C. marginal revenue and marginal cost.
D. price and marginal revenue.


Answer: C)



4. Assume the XYZ Corporation is producing 20 units of output. It is selling this output in
a purely competitive market at $10 per unit. Its total fixed costs are $100 and its
average variable cost is $3 at 20 units of output. This corporation:
A. should close down in the short run.
B. is maximizing its profits.
C. is realizing a loss of $60.
D. is realizing an economic profit of $40.

Answer: D)
5. Suppose that at 500 units of output marginal revenue is equal to marginal cost. The
firm is selling its output at $5 per unit and average total cost at 500 units of output is $6.
On the basis of this information we:
A. can say that the firm should close down in the short run.
B. can say that the firm can produce and realize an economic profit in the short run.
C. cannot determine whether the firm should produce or shut down in the short run.
D. can assume the firm is not using the most efficient technology.


Answer: D)



6. The short-run supply curve of a purely competitive producer is based on its:
A. AVC curve.
B. ATC curve.
C. AFC curve.
D. MC curve.


Answer: D)



7. Refer to the above diagram. At the profit-maximizing output, the firm will realize:
A. a loss equal to BCFG.
B. a loss equal to ACFH.
C. an economic profit of ACFH.
D. an economic profit of ABGH.

Answer: B)




8. Refer to the above diagram. The profit-maximizing output:
A. is n.
B. is k.
C. is h.
D. cannot be determined from the information given.




Answer: A)

9. Refer to the above diagram. The short-run supply curve for this firm is the:
A. entire MC curve.
B. segment of the AVC curve lying to the right of the MC curve.
C. segment of the MC curve lying above the ATC curve.
D. segment of the MC curve lying above the AVC curve.


Answer: D)




10. Refer to the above diagram. The firm will shut down at any price less than:
A. P1.
B. P2.
C. P3.
D. P4.

Answer: A)




11. If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.50, it will
increase its profits by:
A. reducing output and raising price.
B. reducing both output and price.
C. increasing both price and output.
D. raising price while keeping output unchanged.

Answer: A)





12. Refer to the above data. The monopolist will realize a:
A. profit of $8.50.
B. profit of $7.50.
C. profit of $16.
D. loss of $14.


Answer: C)


13. Refer to the above diagram for a pure monopolist. Monopoly output will be:
A. between f and g.
B. h.
C. g.
D. f.


Answer: D)


14. Refer to the above diagram for a pure monopolist. Monopoly profit:
A. cannot be determined from the information given.
B. will be ae per unit sold.
C. will be bc per unit sold.
D. will be ac per unit sold.



Answer: A)




15. Which of the following conditions is not required for price discrimination?
A. Buyer with different elasticity’s must be physically separate from each other.
B. The good or service cannot be resold by original buyers.
C. The seller must be able to segment the market, that is, to distinguish buyers with
different elasticity’s of demand.
D. The seller must possess some degree of monopoly power.


Answer: B)



16. A natural monopoly occurs when:
A. long-run average costs decline continuously through the range of demand.
B. a firm owns or controls some resource essential to production.
C. long-run average costs rise continuously as output is increased.
D. economies of scale are obtained at relatively low levels of output.



Answer: A)


17. The demand curve faced by a pure monopolist:
A. may be either more or less elastic than that faced by a single purely competitive firm.
B. is less elastic than that faced by a single purely competitive firm.
C. has the same elasticity as that faced by a single purely competitive firm.
D. is more elastic than that faced by a single purely competitive firm.


Answer: B


18. Monopolistic competition means:
A. a market situation where competition is based entirely on product differentiation and
advertising.
B. a large number of firms producing a standardized or homogeneous product.
C. many firms producing differentiated products.
D. a few firms producing a standardized or homogeneous product.



Answer: A


19. Which of the following is not a basic characteristic of monopolistic competition?
A. the use of trademarks and
and names
B. recognized mutual interdependence
C. product differentiation
D. a relatively large number of sellers


Answer: B



20. Nonprice competition refers to:
A. low ba
iers to entry.
B. product development, advertising, and...