Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Miroceconomics > exam 3 > Flashcards

exam 3 Flashcards

1
Q

which market model has the least number of firms

A

pure monopoly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

there is no control over price by firms in

A

pure competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

which is true under conditions or pure competition

A

no single firm can influence the market price by changing the output

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

competitive firms are assumed to

A

have identical products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

the demand curve faced by a purely competitive firm

A

demand = marginal revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

if a firm is a price taker, then the demand curve for the firm’s product is

A

perfectly elastic

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

refer to the above graph for a firm in pure competition. Line A represents

A

total revenue

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

assume the price of a product sold by a purely competitive firm is $5. given the data in the accompanying table, at what output is total profit highest in the short run

A

40`

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

refer to the above table. if the firm shuts down in the short run, the total cost will be

A

2500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

refer to the above table. if the product sells for $1200 a unit, the firm’s profit maximizing output is

A

4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

refer to the above table. if the product sells for $1200 a unit, the firm’s profit maximizing output is

A

4

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

in a typical graph for a purely competitive firm, where the total cost and total revenue curves intersect, there is a

A

normal profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Refer to the above table. the equilibrium price of the product is

A

40

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

refer to the above table. the marginal revenue from the third unit of output is

A

40

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

a profit maximizing firm in the short run will expand output

A

as long as marginal revenue is greater than marginal cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

a firm sells a product in a purely competitive market. the marginal cost of the product at the current output is 5 dollars and the market price is 5. what should the firm do

A

shut down if the minimum possible average variable cost is 5.25

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Refer to the above graph. The level of output at which this firm will produce is

A

OC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Refer to the above graph. the level of output at which this firm will shut down is

A

OA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Refer to the graph above. The level of output at which this firm is maximizing an economic profit is

A

OC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Refer to the above cost chart. If the marginal revenue is $6, what output level will the firm produce

A

14

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

the individual firm’s short - run supply curve is that part of its

A

marginal cost curve lying above its average variable cost curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

the individual firm’s short - run supply curve is that part of its

A

marginal cost curve lying above its average variable cost curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Refer to the above graph. to maximize profits, the firm would produce

A

OE units which will equals profits ABGH

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

based on the graph above, the firm earning is

A

O economic profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Refer to the above graph. if represents a profit - maximizing firm producing under conditions or pure competition. When the firm is in equilibrium in the short run, its average fixed cost is

A

DE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Refer to the above graph. It represents a profit - maximizing firm producing under conditions of pure competition. when the firm is in equilibrium in the short run, its average variable cost is

A

DB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Refer to the above graph. It shows the cost curves for a competitive firm. if the market price falls to $.55 the optimal output rate is

A

0

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Refer to the graph above the graph. it shows the short - run cost curves for a purely competitive firm together with a number with a number of different prices. At what price is the firm making only normal profit

A

P3

29
Q

refer to the above graph. it shows the short - run cost curves for a purely competitive firm together with a number of different prices. At what price is the shut down point for the firm

A

P1 shut down

30
Q

The long run supply curve would be perfectly elastic

A

Constant cost industry

31
Q

Allocative efficiency occurs when the

A

Marginal cost equals the marginal benefit to society

32
Q

In long - run equilibrium under conditions of pure competition and productive efficiency, all firms produce at minimum

A

Average total cost

33
Q

In long - run equilibrium under conditions of pure competition and productive efficiency, all firms produce at minimum

A

Average total cost

34
Q

One feature of pure monopoly is that the monopolist is

A

A price maker

35
Q

On defining characteristic of pure monopoly is that

A

produce products with no close substitutes

36
Q

the classic example of a private, unregulated monopoly is

A

DE beers

37
Q

Natural monopolies result from

A

extensive economies of scale in production

38
Q

Natural monopolies result from

A

extensive economies of scale in production

39
Q

One feature of pure monopoly is that the demand curve

A

Slopes downward

40
Q

a pure monopoly firm will never change a price in the inelastic range of its demand carve because lowering price to get into this region will

A

decrease total revenue, increase total cost, and decrease profit

41
Q

refer to the above graph showing the short - run revenue for a monopolist. what price should be charged in order to maximize total revenue

A

P3

42
Q

Refer to the above table. what is the change in total revenue if she lowers the price from $20 to $18

A

30

43
Q

at the profit - maximizing level of output, a monopolist will always operate where

A

price is greater than marginal cost

44
Q

at the profit - maximizing level of output, a monopolist will always operate where

A

price is greater than marginal cost

45
Q

A profit maximizing monopolist facing the situation shown in the graph above should

A

Shut down in the short run

46
Q

The supply curve for a monopolist

A

nonexistent

47
Q

monopolist are said to be allocatively inefficient because

A

at the profit maximizing output, the marginal benefit to society from increasing output is greater than the marginal cost to society

48
Q

based on the graph above, what is the difference between the purely competitive equilibrium level of output an the pure monopolist equilibrium level of output

A

20

49
Q

Refer to the above graph. if the monopoly shown is able to begin practicing [erfect price discrimination, what will the profit - maximizing quantity be

A

q2

50
Q

for the last unit sold by a perfectly price discriminating monopolist, price will be

A

p=mc

51
Q

a major characteristic of monopolistic competition is

A

a relatively large number of firm selling the product

52
Q

which assumption is part of the model of monopolistic competition

A

no collision

53
Q

one difference between monopolistic competition and pure competition is that

A

there is some control over price in monopolistic competition

54
Q

refer to the above graph. a successful advertising campaign by a monopolistic competitive firm will cause the demand curve to shift from

A

A to B and becomes less elastic

55
Q

refer to the above graph. in the short run, this monopolistic competitive firm will set price at

A

65 and produce 35 units of output

56
Q

refer to the above graph. in the short run, this monopolistic competitive firm will set price at

A

65 and produce 35 units of output

57
Q

53

A

525

58
Q

54

A

earn a normal profit but not an economic profit

59
Q

55

A

a

60
Q

56

A

firm produce at an output level less than the least cost output

61
Q

57

A

few sells

62
Q

58

A

oligopoly competition

63
Q

59

A

mutual independence

64
Q

60

A

2600

65
Q

61

A

over some interval, a change in the oligopolists marginal cost will not cause a change in the oligopolist profit - maximizing price

66
Q

62

A

p3 mr = mc

67
Q

63

A

follow the price cut but ignores a price increase embodies the possibility that changes in unit costs will have no effect on equilibrium price and output

68
Q

64

A

be self - concealing and contribute to economic inefficiency

69
Q

65

A

pure economic profit

Miroceconomics (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions