Microeconomics Review: Quiz
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The study of microeconomics looks at how an individual or firm analyses their situations and decides how to allocate a scarce supply of resources in an efficient and effective manner. In the following review quiz, we’re going to take a look at how much you know about how this study works and what is covered within its subject matter. Think you can score full marks? Let’s see if you’re right!
- 1.Marginal revenue for the perfectly competitive firm equals:
- A.
The addition to total cost from producing one more unit of output
- B.
Average revenue at all levels of output
- C.
Marginal cost at all levels of output
- D.
Average total cost at all levels of output
- 2.The perfectly competitive firm is a price _______________.
- 3.In a monopoly seeking to maximize its profit, the level of output will be less than if there was was competition in the marketplace.
- A.
True
- B.
False
- 4.Which of the following statements are true about a factory operating at its most efficient level?
- A.
Marginal product is at the highest level possible
- B.
Marginal product is at the lowest level possible
- C.
Marginal cost is at the highest level possible
- D.
Marginal product is at the lowest level possible
- 5.In one or two sentences, describe what economists mean by the invisible hand of the marketplace.
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