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Question 11 If marketprice is greater than or equal to the minimum of AVC (average variable cost)but below the minimum of ATC (average total cost), thenA) revenueis lower than variable costs.B) profit...

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Question 11



If market
price is greater than or equal to the minimum of AVC (average variable cost)
but below the minimum of ATC (average total cost), then



A) revenue
is lower than variable costs.



B) profit is
positive and so the firm will operate.



C) the firm
will shut down.



D) the firm
will operate because its loss is less than if it shuts down.







Question 25



A firm's
short-run supply curve is the portion of the marginal cost (MC) curve that lies
……….



A) above the
positive total revenue point



B) above the
break-even point



C) above the
shut-down point



D) below the
break-even point



E) below the
shut-down point







Question 39



As discussed
in class, let's assume that a firm sells its product in two different markets -
A and B. If the price elasticities in these markets are different, such as -1.2
and -2, respectively, you would think that charging the same price of $5. for
example. in both markets ……………. maximize the firm's profit because the marginal
revenue in market A (MRa) will be………the marginal revenue in market B (MRg).



will not:
less than



will not:
greater than



will: the
same as











Question 41



According to
Professor Choi, the study of ………….. is the least defined and established in the
economics,



a) perfect
competition



b) oligopoly



C) a
monopoly



D) duopoly



E) all of
the above









Question 49



If the own price
elasticity is -4, the Lerner Index is …………. And the larger the Lerner Index is,
the



…………… the
market power.



a) -0.25;
larger



b) 0.25:
smaller



C) 0.25;
larger



D) -0.25;
smaller



E) 4; larger



Answered Same Day Nov 24, 2022

Solution

Komalavalli answered on Nov 25 2022
38 Votes
MCQ
Question 11:
c) The firm will shut down
Question 25:
C) above the shut-down point
Question 39:
a)will not: less than
Question 41:
a)Perfect competition
Question 49:
c) 0.25,Large
MCQ

Question 11:

c) The firm will shut down

Question 25:

C) above the shut
-
down...
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