L> micpure William Rainey Harper College ECO 211 Resee Lessons 8/9a and 8/9b - Pure Competition INSTRUCTIONS: Select the BEST answer for each question by markingthe circle next to your selection 1. Given the table below, what is the short-run profit-maximizing level of output for the firm? Output Total revenue Total expense 1 $ 4 $ 2 2 8 3 3 12 6 4 16 9 5 20 14 A. 2 systems B. 3 units C. 4 systems D. 5 devices 2. Assume the price of a product marketed by a pucount competitive firm is $5. Given the information in the accompanying table, at what output is complete profit highest possible in the short run? Output Total cost 20 $ 70 25 75 30 85 35 100 40 125 45 155 50 190 A. 20 B. 30 C. 40 D. 50 3. In which sector design would the number of firms be the fewest? A. monopolistic competition B. pure competition C. pure monopoly D. oligopoly 4. Under which industry version are the conditions of enattempt into the industry easiest? A. pure competition B. pure monopoly C. monopolistic competition D. oligopoly 5. Which principle is inregular through pure competition? A. short-run losses B. product differentiation C. liberty of enattempt or leave for firms D. a large variety of buyers and sellers 6. Which characteristic would finest be linked via pure competition? A. few sellers B. price taker C. nonprice competition D. product differentiation 7. In pure competition, the average revenue of a firm constantly equals: A. marginal price. B. marginal revenue. C. average total cost. D. total revenue. 8. Answer the question based on the table below. Price Quantity TFC TVC $ 5 5 $25 $10 5 10 25 20 5 15 25 50 5 20 25 60 At what allude on the table would certainly a pucount competitive firm cover all of its expenses and earn only normal profits? A. Q = 5 B. Q = 10 C. Q = 15 D. Q = 20 9. Let us expect Harry"s, a neighborhood supplier of chili and beer, has the complying with revenue and also price structure: full revenue$3,000 per week complete variable cost$2,000 per week complete resolved costs$2,000 per week A. Harry"s have to continue to be open in the lengthy run. B. Harry"s have to shut down in the short run. C. Harry"s must continue to be open up in the brief run. D. Harry"s need to shut down in the brief run however reopen up in the lengthy run. 10. R-1 REF 23-45 Refer to the over graph. Which of the output levels is the profit-maximizing output level for this firm? A. Q1 B. Q2 C. Q3 D. Q4 11. Use the table listed below to answer the following question(s) for a pudepend competitive firm. Output Total revenue Total price 0 $ 0 $ 50 1 40 74 2 80 94 3 120 117 4 160 142 5 200 172 R-2 REF 23-49 (REF23049) Refer to the above table. The marginal revenue from the 3rd unit of output is: A. $40. B. $50. C. $120. D. $160. 12. Use the table listed below to answer the next question(s) for a purely competitive firm. Output Total revenue Total cost 0 $ 0 $ 50 1 40 74 2 80 94 3 120 117 4 160 142 5 200 172 R-2 REF 23-49 (REF23049) Refer to the over table. When the firm produces 3 systems of output, it provides an economic: A. profit of $3. B. loss of $3. C. profit of $9. D. loss of $9. 13. Use the table listed below to answer the following question(s) for a pudepend competitive firm. Output Total revenue Total cost 0 $ 0 $ 50 1 40 74 2 80 94 3 120 117 4 160 142 5 200 172 R-2 REF 23-49 (REF23049) Refer to the above table. The marginal expense of the 3rd unit of output is: A. $20. B. $23. C. $24. D. $25. 14. Which is true for a purely competitive firm in short-run equilibrium? A. The firm is making only normal profits. B. The firm"s marginal price is higher than its marginal revenue. C. The firm"s marginal revenue is equal to its marginal cost. D. A decrease in output would certainly result in a rise in profits. 15. R-3 REF 22-68 Using the diagram over, in order to maximize profits, this firm would certainly develop ____________ which would result in ____________. A. 0D devices, a loss equal to ABGH B. 0E units, a loss equal to ALFH C. 0D systems, financial profits equal to BCFG D. 0E systems, economic profits equal to ABGH 16. Pure competition produces a socially optimal allocation of sources in the lengthy run because: A. marginal price equates to marginal revenue. B. marginal price equates to average full cost. C. marginal revenue equates to price. D. marginal expense amounts to price. 17. In long-run equilibrium a pucount competitive firm will operate wright here price is: A. better than MR yet equal to MC and minimum ATC. B. greater than MR and also MC, however equal to minimum ATC. C. better than MC and also minimum ATC, however equal to MR. D. equal to MR, MC, and also minimum ATC. 18. Productive effectiveness refers to: A. price minimization, wright here P = minimum ATC. B. manufacturing, wbelow P = MC. C. maximizing profits by producing wright here MR = MC. D. setting TR = TC. 19. R-4 REF 23-130 According to the graphs above, what will take place in the long run to sector supply and also the equilibrium price of the product? A. S will decrease, P will certainly decrease. B. S will certainly boost, P will certainly decrease. C. S will certainly decrease, P will increase. D. S will rise, P will certainly rise. 20. If firms enter a pucount competitive market, then in the long run this change will change the industry: A. demand also curve to the left, and also the industry price will decrease. B. demand curve to the best, and also the sector price will certainly increase. C. supply curve to the right, and the industry price will decrease. D. supply curve to the left, and also the market price will certainly increase. 21. R-5 REF 23-126 A purely competitive firm, as presented over, will confront what type of readjust in revenues over the lengthy run, assuming sector demand is constant? A. Profits will increase. B. Profits will decrease. C. Profits will be unchanged. D. Cannot be made a decision from the indevelopment provided. 22. In the short run, solved prices for a profitable firm are: A. zero. B. negative. C. crucial factors of the output level. D. irrelevant in determining the optimal level of output. 23. R-6 REF 23-97 Which suggest above is certainly not on a competitive firm"s short-run supply curve? A. A B. B C. C D. D 24. R-7 REF 23-96 This pure competitive firm in the above graph will certainly not develop unmuch less price amounts to at least: A. $2. B. $5. C. $7. D. $10. 25. The short-run supply curve for a competitive firm is the: A. entire MC curve. B. segment of the MC curve lying below the AVC curve. C. segment of the MC curve lying above the AVC curve. D. segment of the AVC curve lying to the best of the MC curve. 26. R-8 REF 23-81 The pudepend competitive firm above will: A. shut dvery own. B. develop via short-run losses. C. create with long-run financial revenues. D. develop through short-run financial earnings. 27. R-9 REF 23-80 The graph above reflects a profit-maximizing pudepend competitive firm operating in the brief run. Which location in the graph represents the amount the firm deserve to save by continuing to create in the brief run rather than closing dvery own immediately? A. 0beg B. 0cdg C. acdf D. abef 28. R-10 REF 23-79 The graph over represents a profit-maximizing firm creating under problems of pure competition. When the firm is in equilibrium in the short run, its average addressed price is: A. EH. B. DE. C. DH. D. DB. 29. A firm need to always continue to operate at a loss in the short run if: A. the firm will certainly display a profit. B. the owner enjoys helping her customers. C. it can cover its variable costs and some of its solved costs. D. the firm cannot develop any type of other commodities more profitably. 30. R-11 REF 22-72 Consider the purely competitive firm pictured above. The firm is earning: A. normal revenues, considering that price is above AVC. B. economic earnings, considering that its price is above AVC. C. normal revenues, given that its price just covers ATC. D. losses, given that it is operating at the shutdown allude. 31. A purely competitive firm is in short-run equilibrium and its MC exceeds its ATC. It can be concluded that: A. firms will leave the sector in the long run. B. the firm is realizing an economic profit. C. the firm is realizing a loss. D. this is an increasing-expense market. 32. R-12 REF 22-66 Refer to the above graph. The level of output at which this firm will certainly create is: A. 0C. B. 0B. C. 0A. D. 0K. This is the end of the test.
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