L> micpure wilhelm Rainey Harper college ECO 211 evaluation Lessons 8/9a and 8/9b - Pure vain INSTRUCTIONS: select the best answer for each question by markingthe circle beside your an option 1. offered the table below, what is the short-run profit-maximizing level of output for the firm? output total revenue full cost 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 units 2. i think the price the a product offered by a completely competitive for sure is $5. Provided the data in the accompanying table, in ~ what calculation is full profit highest in the short run? calculation complete 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 market model would the variety of firms be the fewest? A. monopolistic competition B. pure compete C. pure monopoly D. oligopoly 4. Under which industry model room the conditions of entry right into the industry easiest? A. pure vain B. pure monopoly C. monopolistic vain D. oligopoly 5. i beg your pardon idea is inconsistent through pure competition? A. short-run losses B. product differentiation C. liberty of entrance or exit for this firm D. a big number the buyers and also sellers 6. which characteristic would best be linked with pure competition? A. few sellers B. price taker C. nonprice vain D. product differentiation 7. In pure competition, the mean revenue the a firm constantly equals: A. marginal cost. B. marginal revenue. C. average full cost. D. total revenue. 8. answer the question based upon the table below. Price amount TFC TVC $ 5 5 $25 $10 5 10 25 20 5 15 25 50 5 20 25 60 at what suggest on the table would a purely competitive firm cover every one of its costs and earn only normal profits? A. Q = 5 B. Q = 10 C. Q = 15 D. Q = 20 9. allow us mean Harry"s, a neighborhood supplier of chili and also beer, has actually the complying with revenue and cost structure: total revenue$3,000 per week complete variable cost$2,000 per week full fixed costs$2,000 every week A. Harry"s must stay open in the long run. B. Harry"s need to shut down in the short run. C. Harry"s must stay open up in the brief run. D. Harry"s must shut under in the quick run yet reopen in the lengthy run. 10. R-1 REF 23-45 refer to the over graph. I m sorry of the calculation levels is the profit-maximizing calculation level because that this firm? A. Q1 B. Q2 C. Q3 D. Q4 11. usage the table below to price the following question(s) for a completely competitive firm. output total revenue complete 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 revenue indigenous the third unit of output is: A. $40. B. $50. C. $120. D. $160. 12. use the table below to price the next question(s) because that a purely competitive firm. output complete 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. As soon as the for sure produces 3 systems of output, it provides an economic: A. profit of $3. B. loss of $3. C. profit of $9. D. ns of $9. 13. use the table below to prize the next question(s) for a completely competitive firm. output total revenue complete 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. The marginal price of the 3rd unit of calculation is: A. $20. B. $23. C. $24. D. $25. 14. i beg your pardon is true for a completely competitive for sure in short-run equilibrium? A. The certain is making only normal profits. B. The firm"s marginal cost is higher than its marginal revenue. C. The firm"s marginal revenue is equal to the marginal cost. D. A to decrease in calculation would lead to a rise in profits. 15. R-3 REF 22-68 making use of the diagram above, in order to maximize profits, this certain would produce ____________ i beg your pardon would an outcome in ____________. A. 0D units, a loss equal to ABGH B. 0E units, a loss equal to ALFH C. 0D units, economic profits same to BCFG D. 0E units, economic profits equal to ABGH 16. Pure competition produces a socially optimal allocation of resources in the lengthy run because: A. marginal cost equals marginal revenue. B. marginal price equals average full cost. C. marginal revenue amounts to price. D. marginal cost equals price. 17. In long-run equilibrium a completely competitive firm will run where price is: A. better than MR yet equal to MC and also minimum ATC. B. higher than MR and MC, yet equal to minimum ATC. C. greater than MC and also minimum ATC, yet equal to MR. D. same to MR, MC, and also minimum ATC. 18. Productive performance refers to: A. cost minimization, wherein P = minimum ATC. B. production, whereby P = MC. C. maximizing revenues by creating where mr = MC. D. setting TR = TC. 19. R-4 REF 23-130 according to the graphs above, what will happen in the lengthy run to industry supply and the equilibrium price of the product? A. S will certainly decrease, P will certainly decrease. B. S will certainly increase, P will certainly decrease. C. S will decrease, P will certainly increase. D. S will increase, P will certainly increase. 20. If firms enter a completely competitive industry, climate in the long run this readjust will shift the industry: A. demand curve come the left, and also the market price will certainly decrease. B. demand curve come the right, and also the market price will increase. C. supply curve come the right, and the sector price will decrease. D. it is provided curve come the left, and also the market price will certainly increase. 21. R-5 REF 23-126 A completely competitive firm, as presented above, will confront what sort of change in revenues over the lengthy run, assuming industry demand is constant? A. profits will increase. B. earnings will decrease. C. earnings will be unchanged. D. cannot be decided from the information given. 22. In the short run, fixed costs for a financially rewarding firm are: A. zero. B. negative. C. important components of the calculation level. D. irregularity in identify the optimal level that output. 23. R-6 REF 23-97 i m sorry point above is absolutely not ~ above a vain firm"s short-run it is provided curve? A. A B. B C. C D. D 24. R-7 REF 23-96 This pure competitive certain in the over graph will certainly not develop unless price amounts to at least: A. $2. B. $5. C. $7. D. $10. 25. The short-run supply curve because that a competitive for sure is the: A. whole MC curve. B. segment that the MC curve lying listed below the AVC curve. C. segment that the MC curve lying over the AVC curve. D. segment that the AVC curve lying come the ideal of the MC curve. 26. R-8 REF 23-81 The purely competitive firm over will: A. closeup of the door down. B. create with short-run losses. C. develop with long-run economic profits. D. create with short-run economic profits. 27. R-9 REF 23-80 The graph over shows a profit-maximizing purely competitive firm operating in the brief run. I m sorry area in the graph to represent the quantity the firm can save by proceeding to create in the short run rather than closing under 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 conditions of pure competition. As soon as the firm is in equilibrium in the short run, its average fixed cost is: A. EH. B. DE. C. DH. D. DB. 29. A certain should constantly continue to run at a lose in the quick run if: A. the firm will display a profit. B. the owner enjoys helping her customers. C. it have the right to cover its change costs and some of its addressed costs. D. the firm cannot produce any other products more profitably. 30. R-11 REF 22-72 consider the purely competitive certain pictured above. The certain is earning: A. regular profits, since price is over AVC. B. economic profits, because its price is over AVC. C. typical profits, because its price just covers ATC. D. losses, since it is operation at the shutdown point. 31. A purely competitive for sure is in short-run equilibrium and its MC over its ATC. It can be finish that: A. firms will leave the market in the long run. B. the firm is establish an financial profit. C. the for sure is realizing a loss. D. this is an increasing-cost industry. 32. R-12 REF 22-66 describe the over graph. The level of calculation at i beg your pardon this firm will produce is: A. 0C. B. 0B. C. 0A. D. 0K. This is the finish of the test.

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