A: there are many small sellers.
B: the product is homogenous.
C: it is very easy for firms to enter or exit the market.
D: all of these.
A: a contest among firms to provide good service after the sale.
B: competition in product quality.
C: rivalry in product design.
D: none of these.
A: The firm is a price maker.
B: If the firm wishes to maximize profits it will produce an output level in which total revenue equals total cost.
C: The firm will not earn an economics profit in the long run.
D: The firm's short-run supply curve is its MC curve below its AVE curve.
A: must take the price that is determined in the market.
B: must reduce its price if it wants to sell larger quantity.
C: must be large relative to the total market.
D: can exert a major influence on the market price.
A: substantially change the market price of its product by changing its level of production.
B: sell all of its output at the market price.
C: sell some of its output at a price higher than the market price.
D: decide what price to charge for its product.
A: The short-run average total costs of firms that are price takers will be constant.
B: If a price taker increased its price, consumers would buy from other suppliers.
C: Firms in a price-taker market will have to advertise in order to increase sales.
D: There are no good substitutes for the product supplied by a firm that is a price taker.
A: perfectly inelastic.
B: relatively inelastic.
C: relatively elastic.
D: perfectly elastic.
A: setting a price higher than the going price results in profits.
B: each firm's product is perceived as different.
C: each firm has a significant market share.
D: setting a price higher than the going price results in zero sales.
A: positive economic profits.
B: negative economic profits.
C: zero economic profits.
D: all of these are possible.
A: marginal revenue equals marginal cost.
B: total revenue equals total cost.
C: total revenue is at a maximum.
D: none of these.
A: marginal cost.
B: average cost.
C: average variable cost.
D: average fixed cost.
A: P = AC.
B: TR = TC.
C: MR = AR.
D: MR = MC.
E: TR = MR.
A: total profit brought about by selling one more unit of output.
B: Price brought about by selling one more unit of output.
C: Total revenue brought about by selling one more unit of output.
D: output brought about by a $1 change in product price.
E: Average revenue brought about by selling one more unit of output.
To maximize profits, a firm must maximize total revenue.
In long-run equilibrium, a competitive firm produces at the point of minimum average total cost.
In the short-run, a perfectly competitie firm produces where total cost is minimum.
In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.
Earn zero economic profit
Change plant size in the long run
Change output in the short run
Do any of these.
Economics of real cost
Maximum total revenue
Diseconomies of scale cost.
Minimum point on the long-run average cost curve.
A seller of a highly advertised and differentiated product in a market with lower barriers to entry in the long run.
The only seller of a good for which there are no good substitutes in a market with high barriers to entry.
The only buyer of a unique raw material.
The producer of a product subsidized by the government.
The demand for its product is inelastic.
The industry demand curve is horizontal.
Resource prices increase as the monopolist expands output.
The entire market demand curve is the monopolist's demand curve.
Local electic utility
A single firm has control over a vital natural resource.
Many smaller firms can produce the entire market output at the same per-unit cost as could one large firm.
A single large firm can produce the entire market output at a lower per-unit cost than a group of smaller firms.
Many smaller firms can produce the entire market output at a lower per-unit cost than could one large firm.
The marginal cost curve will be above the average cost curve
The monopolist will set price equal to marginal cost and will earn economic profits.
Economies of scale exist.
Output is produced under conditions of constant cost.