AIS Exam Ch 1 Questions & Answers 2024/2025
Which of the following markets is most likely to be perfectly competitive? - ANSWERSThe market for mushrooms
Which of the following markets is most likely to be perfectly competitive? - ANSWERSThe market for rock salt
What are the likely reason...
Which of the following markets is most likely to be perfectly competitive? - ANSWERSThe market for
mushrooms
Which of the following markets is most likely to be perfectly competitive? - ANSWERSThe market for rock
salt
What are the likely reason(s) that the market for electricity is not perfectly competitive? Please select all
that apply. - ANSWERSIt is difficult to enter or exit the industry as a supplier
There are few sellers in the market
What are the likely reason(s) that the market for dress shirts is not perfectly competitive? Please select
all that apply. - ANSWERSDress shirts are not a standardized (homogeneous) product.
Pete's Electronics is a small company that produces 8 gigabyte flash drives in a perfectly competitive
market. The market price for 8 gigabyte flash drives is $15 each.
(draw line from 10 to 60 straight at $15) - ANSWERSQuantity
(8GB flash drives)
TR MR AR
(dollars)
, $$$
10 150 15 15
20 300 15 15
30 450 15 15
40 600 15 15
50 750 15 15
60 900 15 15
Soylent Green is a perfectly competitive firm that produces soybeans. What is Soylent Green's marginal
revenue for an extra bushel of soybeans sold? - ANSWERS$50 for an extra bushel of soybeans sold
Fill in the marginal revenue (MR) and average revenue (AR) columns
(draw line from 5 to 30 @$4) - ANSWERSQuanity MR AR
(dollars) (dollars)
544
10 4 4
15 4 4
20 4 4
25 4 4
30 4 4
At the market price of $4.00 per apple pie, how many apple pies should Baker Street make? -
ANSWERS25
If the market price for apple pies were to rise to $6.00 per apple pie, how many apple pies should Baker
Street make? - ANSWERS30
The market price of children's mittens is $6.00 per pair. How many pairs of children's mittens should
Smitten produce per week to maximize its profits? - ANSWERS35
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