ECONOMICS

Quiz

Top of Form

Note: It is recommended that you save your response as you complete each question.

Question 1 (1 point)

Question 1 Unsaved

If a perfectly competitive firm increases production from 10 units to 11 units, and the market price is $20 per unit, total revenue for 11 units is:

Question 1 options:

$10.
$20.
$200.
$220.

Bottom of Form

Question 2 (1 point)

Question 2 Unsaved

Which of the following is not an assumption economists make when using the model of perfect competition?

Question 2 options:

Firms seek to maximize profits.
The products of each firm in a particular market are identical.
Each firm sets it price equal to its average total cost.
There is easy entry and exit.

Question 3 (1 point)

Question 3 Unsaved

If a perfectly competitive firm sells 300 units of output at a market price of $1 per unit, its marginal revenue is:

Question 3 options:

less than $1.
$1.
more than $1 but less than $300.
$300.

Question 4 (1 point)

Question 4 Unsaved

mc023-1.jpg

If this is a perfectly competitive market, when the demand is D1 and the supply is S, any firm could enter and sell carrots for:

Question 4 options:

20 cents a pound.
25 cents a pound.
30 cents a pound.
any price above 20 cents a pound.

Question 5 (1 point)

Question 5 Unsaved

mc023-1.jpg

If this is a perfectly competitive market, which of the following is true?

Question 5 options:

The supply curve is linear and is determined by average total cost.
The equilibrium price and output are determined by demand and supply.
Each firm in this market is a price setter.
The price is too high.

Question 6 (1 point)

Question 6 Unsaved

An assumption of the model of perfect competition is:

Question 6 options:

discrimination.
ease of entry and exit.
few buyers and sellers.
limited information.

Question 7 (1 point)

Question 7 Unsaved

mc023-1.jpg

If this is a perfectly competitive market, each firm:

Question 7 options:

will be a price setter.
can sell all it wants to sell at the price determined by demand and supply.
has an incentive to sell at a price lower than the market price.
will attempt to maximize its total revenue.

Question 8 (1 point)

Question 8 Unsaved

An assumption of the model of perfect competition is:

Question 8 options:

difficult entry and exit.
few buyers and sellers.
complete information.
different goods.

Order now and get 10% discount on all orders above $50 now!!The professional are ready and willing handle your assignment.

ORDER NOW »»