Chapter 5 - Pure Competition And Monopoly

Question 1

A SELLER OR BUYER OF A COMMODITY THAT IS UNABLE TO AFFECT THE PRICE AT WHICH THE COMMODITY SELLS BY CHANGING THE AMOUNT IT SELLS

Answer 1

PRICE TAKER

Question 2

THE TOTAL REVENUE PER UNIT OF PRODUCT SOLD

Answer 2

AVERAGE REVENUE

Question 3

THE TOTAL NUMBER OF DOLLARS RECEIVED BY A FIRM FROM THE SALE OF A PRODUCT

Answer 3

TOTAL REVENUE

Question 4

THE ADDITIONAL REVENUE RECEIVED RESULTING FROM THE SALE OF AN EXTRA UNIT OF OUTPUT

Answer 4

MARGINAL REVENUE

Question 5

THE FORCES THAT REDUCE THE AVERAGE COST OF PRODUCING A PRODUCT AS THE FIRM EXPANDS THE SIZE OF ITS OUTPUT IN THE LONG RUN

Answer 5

ECONOMIES OF SCALE

Question 6

WHEN A GIVEN PRODUCT IS SOLD AT MORE THAN ONE PRICE AND THE PRICE DIFFERENCES ARE NOT JUSTIFIED BY COST DIFFERENCES

Answer 6

PRICE DISCRIMINATION

Question 7

THE FAILURE TO PRODUCE ANY GIVEN OUTPUT AT THE LOWEST AVERAGE (AND TOTAL) COST POSSIBLE

Answer 7

X-INEFFICIENCY

Question 8

THE ABILITY TO DEVELOP THE MOST EFFICIENT PRODUCTION TECHNIQUES OVER TIME

Answer 8

DYNAMIC EFFICIENCY