Human beings' wants are unlimited, and the resources required to meet them are most often scarce. Understanding how to allocate the limited resources to meet the unlimited desires of a firm or an individual forms the basis of microeconomics. Take up the microeconomics proficiency and test your understanding of how firms survive in a competitive market. All the best!
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There are many buyers and sellers in the market
The goods offered for sale are largely the same
Firms can freely enter or exit the market
Firms generate small but positive economic profits in the long run
All of the above are characteristics of a competitive market
Gold bullion
Electricity
Cable television
Soda
All of the above represent competitive markets
More than doubles
Doubles
Less than doubles
Cannot be determined because the price of the good may rise or fall
Equal to the price of the good sold
Average revenue divided by the quantity sold
Total revenue divided by the price
Equal to the quantity of the good sold
Marginal cost equals total revenue
Marginal revenue equals average revenue
Marginal cost equals marginal revenue
Price equals average variable cost
Increased production
Decreased production
Maintained production at the current level
Temporarily shut down
Increased production
Decreased production
Maintained production at the current level
Temporarily shut down
Entire marginal-cost curve
Portion of the marginal-cost curve that lies above the average-total-cost curve
Portion of the marginal-cost curve that lies above the average-variable-cost curve
Upward-sloping potion of the average-total-cost curve
Upward-sloping portion of the average-variable-cost curve
Entire marginal-cost curve
Portion of the marginal-cost curve that lies above the average-total-cost curve
Portion of the marginal-cost curve that lies above the average-total-cost curve
Upward-sloping portion of the average-total-cost curve
Upward-sloping portion of the average-variable-cost curve
Total costs of staying open are greater than the total revenue due to staying open
Total costs of staying open are less than the total revenue due to staying open
Variable costs of staying open are greater than the total revenue due to staying open
Variable costs of staying open are less than the total revenue due to staying open
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Here's an interesting quiz for you.