Perfect Competition

Chapter 8 Sample Multiple Choice Questions 1. In a competitive market, no single producer can lick the market toll because a. many other copeers are offering a product that is essentially identical. b. consumers have more ascertain over the market value than producers do. c. government intervention prevents firms from influencing price. d. producers jeer not to change the price. Suppose a firm in a competitive market received $1,000 in do revenue and had a marginal revenue of $10 for the outlast unit produced and sold. What is the number revenue per unit, and how many units were sold? a. $5 and 50 b. $5 and 100 c. $10 and 50 d. $10 and 100 When a advance-maximizing firm in a competitive market has zero economic gain ground, accounting profit a. is negative (accounting losses). b. is positive. c. is also zero. d. could be positive, negative or zero. When a competitive firm triples the amount of output it sells, a. its total revenue triples. b. its average revenue triples. c. its marginal revenue triples. d. its profit essential increase. Which of the following statements regarding a competitive firm is true? a. Since postulate is downward sloping, if a firm increases its level of output, the firm go out have to charge a lower price to sell the additional output. b.

If a firm raises its price, the firm may be able to increase its total revenue even though it will sell fewer units. c. By lowering its price below the market price, the firm will benefit from beingness able to sell more units at the lower price than it could have sold by charging the market price. d. For all firms, average revenue equals the price of the good. The Wheeler Wheat Farm sells stubble to a grain broker in Seattle, Washington. Since the market for stalk is generally considered to be competitive, the Wheeler Wheat Farm maximizes its profit by choosing a. to produce the quantity at which average unsettled cost is minimized. b. to produce the quantity at which average frosty cost is minimized. c. to sell its... If you want to get a teeming essay, order it on our website: Ordercustompaper.com

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