ECO 202-Midterm 3 Exam Questions And Answers 100% Guaranteed Success.
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LML
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LML
In a competitive market, no single producer can influence the market price because - correct answer many other sellers are offering a product that is essentially identical
If Bradley's Butcher Shop sells its product in a competitive market, then - correct ans...
In a competitive market, no single producer can influence the market price because - correct answer
many other sellers are offering a product that is essentially identical
If Bradley's Butcher Shop sells its product in a competitive market, then - correct answer
Bradley's Butcher Shop's total revenue must be proportional to its quantity of output
LML sells butter to a broker in Alber Lea, Minnesota. Because the market for butter is generally
considered to be competitive, LML - correct answer can choose quantity of butter
that it produces but not the price at which it sells its butter
Robin owns a horse stables and riding academy and gives riding lessons for children at pony camp. Her
business operates in a competitive industry. Robin gives riding lessons to 20 kids per month. Her
monthly total revenue is $4,000. The marginal cost of pony camp is $200 per child. In order to maximize
profits, Robin should - correct answer continue to give riding lessons to 20 kids per
month
The short run supply curve for a firm in a perfectly competitive market is - correct answer
the portion of its marginal cost curve that lies above its average variable cost
Mrs. Smith is operating a firm in a competitive market. The market is $6.50. At her profit-maximizing
level of output, her average total cost of production is $7, and her average variable cost of production is
$6. Which of the following statements about Mrs. Smith's firm is correct? - correct answer
Mrs. Smith is earning a loss but should continue to operate in the short run
A competitive market is in long run equilibrium. If demand decreases, we can be certain that price will -
correct answer fall in the short run. All, some, or no firms will shut down, and some
of them will exit the industry. Price will then rise to reach the new long run equilibrium.
A firm the exits its market has to pay - correct answer neither its variable costs nor
its fixed costs
, Assume soybeans are produced in a perfectly competitive market. A soybean farmer is currently
maximizing his profits. If the market price of soybeans falls, after the farmer adjusts to the new price, he
will be producing______bushels of soybeans and his profit will be_______. - correct answer
fewer; lower
Assume the wool industry is perfectly competitive. The market demand curve for wool is _______ and
each individual wool producer's demand curve is _______. - correct answer
downward sloping; horizontal
Market power refers to a firm's ability to - correct answer raise price without losing
all sales of its product
A monopolist is currently maximizing profits. In addition, if P>ATC>MC, then the monopolist - correct
answer earns positive economic profits
Because of a patent, Alcoa is the only manufacturer of soda cans with a stay-put tab. Alcoa can earn a
profit on the sale of soda cans with stay-put tabs - correct answer in the long run
because entry into the industry by new firms is blocked until the patent expires
Relative to a competitively organized industry, a monopoly is more likely to produce - correct answer
less output, charges higher price, and earns economic profits
Which of the following statements is true of a monopoly? - correct answer (i) a
monopoly has the ability to set the price of its product
Competitive firms differ from monopolies in which of the following ways? - correct answer
(i) competitive firms do not have to worry about the price effect lowering their total revenue
(ii) marginal revenue for a competitive firm equals price, while marginal revenue for a monopoly is less
than the price it is able to charge
(iii) monopolies must lower their price in order to sell more of their product, while competitive firms do
not.
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