NDSU ECON 201 EXAM 4 Questions with correct Answers
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Course
NDSU
Institution
NDSU
NDSU ECON 201 EXAM 4 Questions with correct Answers
why are perfectly competitive firms allocatively efficient?
because price equals marginal cost
Nate owns a tattoo parlor in downtown Fargo. on Sunday, he expects to bring in $200 in revenue and his costs are projected to be $440 for TFC a...
NDSU ECON 201 EXAM 4 Questions with
correct Answers
why are perfectly competitive firms allocatively efficient? - answer because price
equals marginal cost
Nate owns a tattoo parlor in downtown Fargo. on Sunday, he expects to bring in $200 in
revenue and his costs are projected to be $440 for TFC and $325 for TVC. He will: -
answer earn a loss and should shut down for the day
For a perfectly competitive firm the demand curve facing the firm will be - answer a
horizontal line on the graph
if production is occurring where marginal cost exceeds price, the perfectly competitive
firm will: - answer fail to maximize profit and resources will be over-allocated to the
product
in the short run a perfectly competitive firm's supply curve ins that segment of the: -
answer marginal cost curve lying above the average variable cost curve
I think the perfect competition model should be called heaven instead - answer true, I
said it in class
T/F...for a perfectly competitive firms the marginal revenue curve is the same as the
average revenue curve - answer true
T/F...in class we agreed that producing 300 million plastic novelty hats would be a good
use of resources in this country - answer false
which characteristic would best be associated with perfect competition? - answer
price taker
in perfect competition: - answer new firms are free to enter
a business firm is earning profits if, at the profit maximizing quantity: - answer price >
average total cost
if a business is earning losses at the profit maximizing quantity, it should stay open if: -
answer price > average variable cost
for a simple monopolistic the demand curve facing the firm will be: - answer a
horizontal line on the graph
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