MCGRAW HILL EXAM LATEST VERSION – REAL EXAM QUESTIONS – A GRADE
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MCGRAW HILL
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MCGRAW HILL
MCGRAW HILL EXAM LATEST VERSION – REAL EXAM QUESTIONS – A GRADE
marginal cost is equal to price. - Answer-A firm within a perfectly competitive market can maximize its profit in the short run by producing up the point where
price - Answer-For a perfectly competitive firm, total profits are...
MCGRAW HILL EXAM LATEST
VERSION – REAL EXAM QUESTIONS
– A GRADE
marginal cost is equal to price. - Answer-A firm within a perfectly competitive market can
maximize its profit in the short run by producing up the point where
price - Answer-For a perfectly competitive firm, total profits are maximized where
marginal costs are equal to ___________ (one word).
profit per unit multiplied by quantity - Answer-In perfect competition, a firm's economic
profit is equal to:
supply - Answer-The marginal cost curve is the short-run ___________ curve for a
competitive firm.
it will experience the highest possible profits at this point - Answer-A firm within perfect
competition will produce up to the point where price equals marginal cost because
above - Answer-When price is _______ average total cost, the firm incurs an economic
profit.
Prices of factor inputs
Technology - Answer-Which of the following factors will alter costs and shift the
marginal cost (or short-run supply curve) to a new location?
supply - Answer-The marginal cost curve is the short-run ______ curve for a
competitive firm.
in the short run, the firm will maximize profit or minimize loss by producing the output at
which price equals marginal cost. - Answer-The profit-maximizing rule of P=MC states
that:
below - Answer-When price is _______ average total cost, the firm incurs an economic
loss.
Technology
Expectations
The price of factor inputs - Answer-The factors that will shift supply (i.e., the
determinants of a firm's supply) include
Improvements in technology
, Firm expectations - Answer-Which of the following factors will alter costs and shift the
marginal cost (or short-run supply curve) to a new location?
increase; to the left - Answer-A wage ______ would raise marginal cost and shift the
supply curve _______.
market - Answer-The sum of all firm's marginal cost curves is the __________ supply
curve.
supply - Answer-The market ___________ schedule shows the various amounts of a
product that producers are willing and able to make available for sale at each possible
price during a specific period.
Demand
Tastes and preferences - Answer-The factors that will shift supply (i.e., the determinants
of a firm's supply) do not include
to the left - Answer-A wage increase would increase marginal costs and shift the supply
curve:
market - Answer-The sum of the marginal cost curves of all the firms is the ______
supply curve.
summation - Answer-The market supply curve is the horizontal ______ of all the
individual supply curves for a good or service.
enter - Answer-When economic profits exist, this causes competing firms to
__________ the market.
enter; fall - Answer-When firms _______ the market, supply increases causing price to
_______.
may; zero - Answer-A competitive firm _______ earn economic profit in the short run
but will earn _______ economic profit in the long run.
price - Answer-Competition, reflected in the entry and exit of firms, eliminates economic
profits and losses by adjusting the product ______ to equal the minimum average total
cost.
True - Answer-True or false: When economic losses exist, this causes firms to exit.
increases; fall - Answer-When firms enter the market, supply _______ causing price to
_______.
decreases; rise - Answer-When firms exit the market, supply _______ causing price to
_______.
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