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Question;1);What is the difference between perfect competition and monopolistic;competition?;A);Perfect competition has a large number of small firms while monopolistic;competition;does;not.;B);In monopolistic competition, firms produce identical goods, while in perfect;competition;firms;produce slightly different goods.;C);Perfect competition has no barriers to entry, while monopolistic competition;does.;D);In perfect competition, firms produce identical goods, while in monopolistic;competition;firms;produce slightly different goods.;E);Perfect competition has barriers to entry while monopolistic competition does;not.;1);2);In a perfectly competitive market, the type of decision a firm has to make is;different in the short;run;than in the long run. Which of the following is an example of a perfectly;competitive firm's;short-run decision?;A);the profit-maximizing;level of output;B);whether or not to change its plant size;C);how much to spend on advertising and sales promotion;D);what price to charge buyers for the product;E);whether or not to enter or exit an industry;2);3);The firm's over-riding;objective is to;A);maximize economic profit.;B);avoid an economic loss.;C);maximize total revenue.;D);maximize normal profit.;E);earn a normal profit.;3);4);The price charged by a perfectly competitive firm is;A);higher the more the firm produces.;B);different than the price charged by competing firms.;C);the same as the market price.;D);indeterminate.;E);lower the more the firm produces.;4);5);A profit-maximizing;output for a single-price;monopoly is determined by the intersection of the;curves and the profit-maximizing;price is found on the ________ curve.;A);total revenue and total cost, total revenue;B);marginal cost and marginal revenue, marginal revenue;C);demand and supply, supply;D);marginal cost and marginal revenue, demand;E);marginal cost and average total cost, demand;5);6);A single-price;monopoly has marginal revenue and marginal cost equal to $19 at 15 units of;output;where the price on the demand curve is $38. At this output, average total cost;is $15.;What;is the total profit earned?;A);$225 B) $570 C) $19 D) $285 E) $345;6);1;7);Rate of return regulation is designed to allow a natural monopoly to;A);underestimate its average cost.;B);earn zero normal profit.;C);earn an economic profit.;D);earn a normal profit.;E);compete with any firm entering the market.;7);8);Which of the following is true about monopolistic competition but false about;perfect;competition?;A);Firms can earn an economic profit in the short run.;B);There are a large number of independently acting sellers.;C);There are no barriers to entry.;D);Firms compete on their product's price as well as its quality and marketing.;E);Firms cannot earn an economic profit in the long run.;8);9);What does monopolistic competition have in common with monopoly?;A);mutual interdependence;B);the ability to collude with respect to price;C);a large number of firms;D);a downward-sloping;demand curve;E);barriers to entry;9);10);Firms in monopolistic competition have demand curves that are;A);U-shaped.;B);horizontal.;C);downward sloping.;D);vertical.;E);upward sloping.;10);2;11);Kevin owns a personal training gymnasium in Orlando. The above figure shows the;demand;and;cost curves for his firm, which competes in a monopolistically competitive;market. Kevin;will;train how many clients per day?;A);between 2 and 4;B);6;C);10;D);4;E);None of the above answers is correct.;11);12);Kevin owns a personal training gymnasium in Orlando. The above figure shows the;demand;and;cost curves for his firm, which competes in a monopolistically competitive;market. What;price;will Kevin charge per session?;A);$20 B) $80 C) $60 D) $100 E) $40;12);13);In monopolistic competition, the products of different sellers are;A);similar but slightly different.;B);unique without any close or perfect substitutes.;C);perfect substitutes.;D);identical.;E);either identical or differentiated.;13);14);When a monopolistically competitive firm's demand curve shifts leftward, what;happens to its;marginal;revenue curve?;A);It disappears.;B);Nothing, the marginal revenue curve is unchanged.;C);It shifts leftward.;D);It shifts rightward.;E);None of the above is correct because the effect on the marginal revenue curve;depends on;whether;the demand was initially elastic or inelastic.;14);3;15);Firms in an oligopoly;i.;are independent of each others' actions.;ii.;can each influence the market price.;iii.;charge a price equal to marginal revenue.;A);i only;B);i and iii;C);ii only;D);iii only;E);i, ii, and iii;15);16);When oligopolies seek to operate as a single-price monopoly, the firms produce at the point;where;A)MR=MC.;B);P=;MR.;C);P;ATC.;D);P=;MC.;E)MC=ATC.;16);17);A cartel is a collusive agreement among a number of firms that is designed to;A);expand output and lower prices but not to a predatory level.;B);expand output and lower prices to a predatory level.;C);restrict output and raise prices.;D);expand output and raise prices.;E);restrict output and lower prices to a predatory level.;17);18);When oligopolies operate like firms in perfect competition, the firms produce;at the point where;the;A);price exceeds the average total cost by the greatest amount.;B);price exceeds the marginal cost by the greatest amount.;C);marginal cost equals the average total cost.;D);price is less than the marginal cost.;E);marginal cost equals the price.;18);19);If one firm in a duopoly increases its production by one unit beyond the;monopoly output, that;firm's;profit ________, the other firm's profit ________, and thetotalprofit of;the duopoly;A);increases, increases, increases;B);increases, decreases, decreases;C);does not change, does not change, does not change;D);increases, does not change, increases;E);increases, decreases, does not change;19);20);A Nash equilibrium is defined as;A);each player taking the action that is best for all the players.;B);forming a cartel with strong penalties for cheaters.;C);earning zero economic profit in the long run.;D);relying on other game players to realize the benefit of cooperation.;E);each player taking the best possible action given the action of the other;player.;20)

 

Paper#57938 | Written in 18-Jul-2015

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