micro parcial 2 si pasé

Question 1

In perfect competition, the company cannot decide on the price at which they want to sell their product or on the quantity of production that they want.
True or false

Answer 1

true

Question 2

The balance condition IMg=CMg belongs to the market type:

Answer 2

perfecto competition

Question 3

Monopolistic competition is not desirable since the loss of efficiency is very large and consumers do not have as wide a range of products to choose from.
true or false

Answer 3

false

Question 4

A monopolist is characterized by the existence of:

Answer 4

one seller and many buyers.

Question 5

It consists of the organization of the market in which “there are many companies that sell similar, but not identical, goods”:

Answer 5

monopolistic competition

Question 6

In monopolistic competition, long-run means that profits will be zero.
true or false

Answer 6

true

Question 7

The monopoly supply curve:

Answer 7

doesnt exist

Question 8

If the market price is equal to the Marginal Cost, then the company makes normal profits.
true or false

Answer 8

true

Question 9

Which of the following factors does not characterize monopoly?

Answer 9

Freedom of entry into the market.

Question 10

The monopoly’s demand curve is elastic since it has no close substitutes.
True or false

Answer 10

false

Question 11

The competitive firm faces a demand curve:

Answer 11

elastic

Question 12

This type of market organization is characterized by having a broken demand curve:

Answer 12

oligopoly

Question 13

One of the main criticisms of Oligopoly is:

Answer 13

That since there are few companies, they tend to collude and form cartels.

Question 14

In a perfectly competitive market, the marginal cost curve is the firm’s supply curve from the CVMe.
true or false

Answer 14

true

Question 15

If the monopolist’s average total cost curve is above its demand curve, the monopolist obtains:

Answer 15

losses

Question 16

To analyze the perfect competition market, it must be fulfilled that the good offered by the producers:

Answer 16

be homogeneous

Question 17

If the market price equals Marginal Cost and equals Average Total Cost, then the firm makes normal profit.
true or false

Answer 17

true

Question 18

The monopolistically competitive firm follows the monopolist rule to maximize profits.
true or false

Answer 18

true

Question 19

The more companies there are in the industry the better, because of the market power they have to modify prices.
true or false

Answer 19

false

Question 20

Adidas and Nike are companies that would be considered oligopolistic.
true or false

Answer 20

true

Question 21

A perfectly competitive firm will do well to close when it can only cover its average variable costs, but not its average total costs.
true or false

Answer 21

false

Question 22

The pure Monopoly supply curve is its Marginal Cost curve from its Average Variable Cost curve.
true or false

Answer 22

false

Question 23

This type of market organization maximizes its profits when it produces where its Marginal Cost curve intersects its Marginal Income curve:

Answer 23

monopoly

Question 24

When a company acts as a price-taker, it implies that:

Answer 24

The price is determined by the market and companies consider it as a given.

Question 25

In the market of monopolistic competition, when the companies want to enter to compete:

Answer 25

They have no impediment to enter the market.

Question 26

In the long run, in a perfectly competitive market, utility maximization occurs on the long-run CTMe curve. true or false

Answer 26

false

Question 27

The Economic Benefits in the long run for the Monopolistic Competition market can be greater than zero or equal to zero. true or false

Answer 27

false

Question 28

Mazda and Honda are companies that would be considered monopolistic competition. true or false

Answer 28

false

Question 29

The fewer companies there are in the industry, the easier it would be to collude. true or false

Answer 29

true

Question 30

A perfectly competitive market is characterized by the existence of:

Answer 30

Many buyers and many sellers.

Question 31

In monopolistic competition, producers compete on the basis of quality of their product. true or false

Answer 31

true

Question 32

In an oligopoly, companies can agree to reduce production in order to obtain more profits. true or false

Answer 32

true

Question 33

It consists of the organization of the market in which each of the companies is affected by the decisions of its rivals:

Answer 33

oligopoly

Question 34

Perfectly competitive market demand equals Marginal Income. true or false

Answer 34

true

Question 35

If the Marginal Income is greater than the Marginal Cost, then the perfectly competitive company, in order to maximize its benefits, must increase its production. true or false

Answer 35

true

Question 36

The demand curve for a monopoly firm:

Answer 36

tends to be inelastic

Question 37

large number of companies is:

Answer 37

perfect competition

Question 38

many number of companies is:

Answer 38

monopolistic competition

Question 39

product identical:

Answer 39

perfect competition

Question 40

product differentiated:

Answer 40

monopolistic competition

Question 41

product unique

Answer 41

monopoly

Question 42

all barriers to entry:

Answer 42

monopoly

Question 43

limited entry

Answer 43

oligopoly

Question 44

free entry

Answer 44

monopolistic competition

Question 45

no artificial restrictions to entry

Answer 45

perfectly competition

Question 46

much control over price

Answer 46

monopoly

Question 47

none market concentration

Answer 47

perfect competition

Question 48

all market concentration

Answer 48

monopoly

Question 49

high market concentration

Answer 49

oligopoly

Question 50

what are the factors of production

Answer 50

capital (k), land (T) and labor (L)and entrepreneurship

Question 51

the demand faced by factors of production is derived from

Answer 51

the goods and services market

Question 52

exist because resources are scarce and have alternative uses. ​

Answer 52

costs

Question 53

is the sacrifice of the opportunity to produce other goods and services.​

Answer 53

the origin of costs

Question 54

economic cost is the same as

Answer 54

opportunity cost

Question 55

is measured by the value or price it obtains in the best alternative use. ​

Answer 55

opportunity cost

Question 56

are the payments that a company must give to the resource providers so that they do not allocate their resources to alternative production opportunities. ​

Answer 56

economic costs

Question 57

the payments of economic costs are 2:

Answer 57

explicit and implicit

Question 58

They are the monetary payments that a company makes to “external agents” that supply labor services, raw materials, fuel, transport services, etc. ​

Answer 58

explicit costs

Question 59

are the payments of the own resources that it uses would have obtained in the best alternative use.​

Answer 59

implicit cost

Question 60

it is the total revenue minus all costs

Answer 60

economic benefit

Question 61

can be changed quickly and easily (short term)

Answer 61

labor, raw materials, electric energy

Question 62

require a longer adjustment time

Answer 62

capital resources like machinery and plant size

Question 63

as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other variables remain at a constant. As investment continues past that point, the rate of return begins to decrease.

Answer 63

law of diminishing returns

Question 64

in the short terms, costs can be classified in

Answer 64

fixed and variable costs

Question 65

are those costs that, in total, do not vary when the level of production changes. ​

Answer 65

fixed costs

Question 66

examples of fixed costs

Answer 66

Leasing, equipment depreciation, insurance premiums.​

Question 67

costs that change with the level of production.

Answer 67

variable costs

Question 68

examples of variable costs

Answer 68

Payments for raw materials, fuel, electricity, work, etc

Question 69

is the sum of Fixed cost and the Variable cost for every level of production. ​

Answer 69

total cost

Question 70

If there is no production, the Total Cost is equal to

Answer 70

fixed cost

Question 71

it can be controlled or disturb in the short term by modifying the production levels. ​

Answer 71

variable cost

Question 72

they are beyond the immediate control of the business owner; they are unavoidable in the short term and must be paid for no matter what the level of production is.

Answer 72

fixed costs

Question 73

is more suitable for making comparisons with the price of the product, which always refers to a unit

Answer 73

average cost

Question 74

The Average Cost Permanent (CMeF) of any level of production is found by

Answer 74

dividing the fixed cost (CF) by quantity (Q). 

Question 75

The Average Variable Cost of any level of production is calculated by

Answer 75

dividing the variable cost (CV) by quantity (Q).

Question 76

The Total Medium Cost it is obtained by

Answer 76

dividing the total cost (CT) by the quantity of product (Q) or adding the CMeF and the CMeV of that level of production.

Question 77

is the extra or additional cost of producing one more unit of product.

Answer 77

marginal cost

Question 78

Is the cost that the company can control directly and immediate.

Answer 78

marginal cost

Question 79

formula for marginal cost

Answer 79

change in total cost entre change in Q

Question 80

any company minimizes its costs where:​

Answer 80

The marginal cost curve (MgC) short to the Average Total Cost curve (ATC) on the minimum point of the curve ATC.

Question 81

Law of Diminishing Returns does not apply in

Answer 81

long term

Question 82

we have assumed that in the long-term ATC curve is

Answer 82

u-shaped

Question 83

When the size of the plant increases, several factors reduce the average costs of production for some time.. like:

Answer 83

Specialization the job​ Specialization of the management​ Capital efficient​ Other factors

Question 84

It involves a large number of companies that produce a non differentiated product (identical for all producers).

Answer 84

perfect competition

Question 85

It is a market structure in which one company is the exclusive seller of a product or service. Entry of additional companies is blocked;

Answer 85

monopoly

Question 86

examples of monopoly

Answer 86

cfe, pemex, ayd

Question 87

There is a lot of competition not based on prices, companies try to differentiate their products based on attributes.

Answer 87

monopolistic competition

Question 88

examples of monopolistic competition

Answer 88

industry of clothing or furniture

Question 89

Involves a few vendors; Because there are "few" firms, each is affected by the decisions of its rivals and must take such decisions into account in setting its price and level of production.

Answer 89

oligopoly

Question 90

examples of oligopoly

Answer 90

automotive industry

Question 91

In perfect competition the price (P) is equal to

Answer 91

Marginal income (MI) and is also equal to Demand (D)

Question 92

formula for average total cost

Answer 92

total cost entre quantity

Question 93

3 types of monopoly

Answer 93

pure, legal, natural

Question 94

It is a company that produces a good without close substitutes and that for its efficiency, innovation and use of cutting-edge technology, makes the consumer prefer its products over others, so it can dominate the entire industry

Answer 94

pure monopoly

Question 95

it is a permitted monopoly. It is an industry where there is only one company in the market because entry is limited by barriers such as legal restrictions, patents, franchises or intellectual property laws.

Answer 95

legal monopoly

Question 96

a company dominates the entire industry by virtue of having carried out a high initial investment and having a large production. is allowed and encouraged by governments, as it is more efficient to have a single company in the industry

Answer 96

natural monopoly

Question 97

Marginal income is below the demand curve, because if the price of the good falls, the income of the producer will be affected in two ways: positively, because it sells more, and negatively, because it will do so at a lower price

Answer 97

marginal income in monopoly

Question 98

In monopoly profits are derived from the difference between

Answer 98

total revenues and total costs.

Question 99

has no supply curve

Answer 99

monopoly

Question 100

Profit maximizing production occurs when

Answer 100

marginal cost is equal to marginal income

Question 101

The highest price the monopolist can charge is

Answer 101

on the demand curve

Question 102

what happens if the price is less than the average total cost

Answer 102

the monopoly has losses

Question 103

The ultimate purpose of monopolistic practices is to

Answer 103

prevent competition and free competition in the production, distribution and marketing of goods and services.

Question 104

consists in the organization of the market in which “there are a lot of companies that sell similar but not identical goods”.

Answer 104

monopolistic competition

Question 105

curve in a monopolistic competition

Answer 105

curve of demand with negative slope

Question 106

how is the elasticity in monopolisitc competition

Answer 106

very elastic

Question 107

They attach great importance to quality, to design and to the ease that the client has to access the product.

Answer 107

monopolistic competition

Question 108

main tool of monopolistic competition

Answer 108

the differentiation between products

Question 109

in monopolistic competition, the price is determined by

Answer 109

the demand curve

Question 110

monopolistic competition in long term

Answer 110

null economical benefit

Question 111

ejemplos de oligopoly

Answer 111

acero, autos, supermercados

Question 112

entry barriers for oligopoly

Answer 112

capital, economies of scale, brand

Question 113

oligopoly determines their price with

Answer 113

total cost

Question 114

the demand curve in oligopoly is

Answer 114

broken

Question 115

como sacar marginal cost en tablas

Answer 115

las diferencias en el variable or total cost, al de abajo se le resta el de arriba

Question 116

formula para accounting benefit:

Answer 116

total income - explicit costs

Question 117

formula para el economic benefit:

Answer 117

total revenue - explicit costs - implicit costs

Question 118

formula for price elasticity

Answer 118

% change in quantity demanded entre % change in price