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The marginal cost curve

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Question 1.1. The marginal cost curve above the minimum average variable cost (Points: 1);indicates points where the firm will realize an economic profit.;covers the area where a firm should shut down.;is equal to the firm's marginal revenue curve.;is the firm's short-run supply curve.;Question 2.2. All but which one of the following are characteristics of monopolistic competition? (Points: 1);a large number of sellers;a homogeneous product;easy entry;a large number of close substitutes;easy exit;Question 3.3. Anna Lopez sells timber in a perfectly competitive market. Incomes increase, and many people buy new homes, the market demand curve shifts to the right. In the short run, she should expect (Points: 1);the price of timber to remain unchanged.;profits to fall.;the price of timber to rise.;firms to leave the timber business.;Question 4.4. A firm in a monopolistically competitive industry faces a downward-sloping demand curve because (Points: 1);the product is homogeneous.;the product is differentiated.;nonprice competition is missing.;barriers to entry are high.;Question 5.5. A firm in perfect competition is assumed to be (Points: 1);a price leader.;a developer of new inventions.;small in size, relative to the size of the industry.;large in size, relative to the size of the industry.;Question 6.6. The greater the price elasticity of the demand curve that the firm faces in monopolistic competition, (Points: 1);the higher the degree of competition in the industry.;the lower the degree of competition in the industry.;the fewer substitutes for the good produced.;the easier it is for the firm to raise its price.;the less sales the firm will gain from a price decrease.;Question 7.7. Along a downward-sloping monopoly demand curve, (Points: 1);marginal revenue is greater than price.;elasticity of demand is constant.;marginal revenue decreases when price decreases.;marginal revenue is equal to zero when price is equal to zero.;Question 8.8. At the point of long-run equilibrium for a perfectly competitive firm, (Points: 1) economic profits are zero.;TR > TC.;TR 0;MR < 0;MR = 0;MR = TR;Additional Requirements;Level of Detail: Only answer needed;Other Requirements: Text info may help;Read the following chapters from Microeconomics Principles and Policies;Chapter 9: Perfect CompetitionChapter 10: MonopolyChapter 11: Monopolistic Competition and Oligopoly

 

Paper#15389 | Written in 18-Jul-2015

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