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ECON 201 Final Exam Practice Questions With 100% SURE ANSWERS
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JACKLINEECON 201 Final Exam Practice Questions With 100% SURE ANSWERS
Terms in this set (124)
for any competitive market, the supply curve is firm's costs of production in that market
closely related to the
a key characteristic of a competitive market is producers sell nearly identical products
that
which of the following is NOT a characteristic of c. entry is limited
a competitive market?
a. buyers and sellers are price takers
b. each firm sells a virtually identical product
c. entry is limited
d. each firm chooses and output level that
maximizes profits
ECON 201 Final Exam Practice Questions
1/19
,Land of Many Lakes (LML) sells butter to a can choose quantity of butter that it produces but not the price at which it sells its butter
broker in Albert Lea, Minnesota. Because the
market for butter is generally considered to be
competitive, LML
which of the following firms is the closest to a. a hot dog vendor in NYC
being a perfectly competitive firm?
a. a hot dog vendor in NYC
b. Microsoft Corporation
c. Ford motor company
d. the campus bookstore
suppose a firm in a competitive market produces $12
and sells 150 units of output and earn $1800 in
total revenue from the sales. If the firm increases
its output to 200 units, the average revenue of
the 200th unit will be
We have an expert-written solution to this problem!
for a firm operating in a competitive industry, c. total revenue is constant
which of the following statements is NOT
correct?
a. price equals average revenue
b. price equals marginal revenue
c. total revenue is constant
d. marginal revenue is constant
Whenever a perfectly competitive firm chooses does not change
to change its level of output, its marginal
revenue
Suppose that in a competitive market the exactly $2.50
equilibrium price is $2.50. What is marginal
revenue for the last unit sold by the typical firm
in this market?
We have an expert-written solution to this problem!
ECON 201 Final Exam Practice Questions
2/19
, 10/4/24, 8:59 AM
at the profit-maximizing level of output c. marginal revenue equals marginal cost
a marginal revenue equals average total cost
b. marginal revenue equals average variable cost
c. marginal revenue equals marginal cost
d. average revenue equals average total cost
We have an expert-written solution to this problem!
Mrs. Smith is operating a firm in a competitive b. Mrs. Smith is earning a loss but should continue to operate in the short run
market. The market price is $6.50. At her profit- Shut down if TR<VC or P<AVC
maximizing level of output, her average total
cost of production is $7.00, and her average
variable cost of production is $6.00. Which of the
following statements about Mrs. Smith's firm is
correct?
a. Mrs. Smith is earning a loss and should shut
down in the short run
b. Mrs. Smith is earning a loss but should
continue to operate in the short run
c. Mrs. Smith is earning a profit since the price is
above the average variable cost
d. without knowing Mrs. Smith's marginal cost,
we cannot determine whether she should tay in
business or shut down
A monopoly c. can set the price it charges for its output but faces a downward sloping demand curve so it
a. can set the price it charges for its output and cannot earn unlimited profits
earn unlimited profits
b. takes the market price as given and earns
small but positive profits
c. can set the price it charges for its output but
faces a downward sloping demand curve so it
cannot earn unlimited profits
d. can set the price it charges for its output but
faces a horizontal demand curve so it can earn
unlimited profits
ECON 201 Final Exam Practice Questions
3/19
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