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economia > micro parcial 2 si pasé > Flashcards

micro parcial 2 si pasé Flashcards

1
Q

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

A

true

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2
Q

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

A

perfecto competition

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3
Q

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

A

false

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4
Q

A monopolist is characterized by the existence of:

A

one seller and many buyers.

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5
Q

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

A

monopolistic competition

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6
Q

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

A

true

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7
Q

The monopoly supply curve:

A

doesnt exist

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8
Q

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

A

true

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9
Q

Which of the following factors does not characterize monopoly?

A

Freedom of entry into the market.

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10
Q

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

A

false

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11
Q

The competitive firm faces a demand curve:

A

elastic

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12
Q

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

A

oligopoly

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13
Q

One of the main criticisms of Oligopoly is:

A

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

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14
Q

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

A

true

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15
Q

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

A

losses

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16
Q

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

A

be homogeneous

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17
Q

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

A

true

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18
Q

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

A

true

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19
Q

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

A

false

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20
Q

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

A

true

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21
Q

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

A

false

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22
Q

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

A

false

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23
Q

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

A

monopoly

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24
Q

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

A

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

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25
Q

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

A

They have no impediment to enter the market.

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26
Q

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

A

false

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27
Q

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

A

false

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28
Q

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

A

false

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29
Q

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

A

true

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30
Q

A perfectly competitive market is characterized by the existence of:

A

Many buyers and many sellers.

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31
Q

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

A

true

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32
Q

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

A

true

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33
Q

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

A

oligopoly

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34
Q

Perfectly competitive market demand equals Marginal Income.
true or false

A

true

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35
Q

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

A

true

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36
Q

The demand curve for a monopoly firm:

A

tends to be inelastic

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37
Q

large number of companies is:

A

perfect competition

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38
Q

many number of companies is:

A

monopolistic competition

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39
Q

product identical:

A

perfect competition

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40
Q

product differentiated:

A

monopolistic competition

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41
Q

product unique

A

monopoly

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42
Q

all barriers to entry:

A

monopoly

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43
Q

limited entry

A

oligopoly

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44
Q

free entry

A

monopolistic competition

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45
Q

no artificial restrictions to entry

A

perfectly competition

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46
Q

much control over price

A

monopoly

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47
Q

none market concentration

A

perfect competition

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48
Q

all market concentration

A

monopoly

49
Q

high market concentration

A

oligopoly

50
Q

what are the factors of production

A

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

51
Q

the demand faced by factors of production is derived from

A

the goods and services market

52
Q

exist because resources are scarce and have alternative uses. ​

A

costs

53
Q

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

A

the origin of costs

54
Q

economic cost is the same as

A

opportunity cost

55
Q

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

A

opportunity cost

56
Q

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

A

economic costs

57
Q

the payments of economic costs are 2:

A

explicit and implicit

58
Q

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

A

explicit costs

59
Q

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

A

implicit cost

60
Q

it is the total revenue minus all costs

A

economic benefit

61
Q

can be changed quickly and easily (short term)

A

labor, raw materials, electric energy

62
Q

require a longer adjustment time

A

capital resources like machinery and plant size

63
Q

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.

A

law of diminishing returns

64
Q

in the short terms, costs can be classified in

A

fixed and variable costs

65
Q

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

A

fixed costs

66
Q

examples of fixed costs

A

Leasing, equipment depreciation, insurance premiums.​

67
Q

costs that change with the level of production.

A

variable costs

68
Q

examples of variable costs

A

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

69
Q

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

A

total cost

70
Q

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

A

fixed cost

71
Q

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

A

variable cost

72
Q

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.

A

fixed costs

73
Q

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

A

average cost

74
Q

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

A

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

75
Q

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

A

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

76
Q

The Total Medium Cost it is obtained by

A

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

77
Q

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

A

marginal cost

78
Q

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

A

marginal cost

79
Q

formula for marginal cost

A

change in total cost entre change in Q

80
Q

any company minimizes its costs where:​

A

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

81
Q

Law of Diminishing Returns does not apply in

A

long term

82
Q

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

A

u-shaped

83
Q

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

A

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

84
Q

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

A

perfect competition

85
Q

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

A

monopoly

86
Q

examples of monopoly

A

cfe, pemex, ayd

87
Q

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

A

monopolistic competition

88
Q

examples of monopolistic competition

A

industry of clothing or furniture

89
Q

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.

A

oligopoly

90
Q

examples of oligopoly

A

automotive industry

91
Q

In perfect competition the price (P) is equal to

A

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

92
Q

formula for average total cost

A

total cost entre quantity

93
Q

3 types of monopoly

A

pure, legal, natural

94
Q

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

A

pure monopoly

95
Q

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.

A

legal monopoly

96
Q

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

A

natural monopoly

97
Q

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

A

marginal income in monopoly

98
Q

In monopoly profits are derived from the difference between

A

total revenues and total costs.

99
Q

has no supply curve

A

monopoly

100
Q

Profit maximizing production occurs when

A

marginal cost is equal to marginal income

101
Q

The highest price the monopolist can charge is

A

on the demand curve

102
Q

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

A

the monopoly has losses

103
Q

The ultimate purpose of monopolistic practices is to

A

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

104
Q

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

A

monopolistic competition

105
Q

curve in a monopolistic competition

A

curve of demand with negative slope

106
Q

how is the elasticity in monopolisitc competition

A

very elastic

107
Q

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

A

monopolistic competition

108
Q

main tool of monopolistic competition

A

the differentiation between products

109
Q

in monopolistic competition, the price is determined by

A

the demand curve

110
Q

monopolistic competition in long term

A

null economical benefit

111
Q

ejemplos de oligopoly

A

acero, autos, supermercados

112
Q

entry barriers for oligopoly

A

capital, economies of scale, brand

113
Q

oligopoly determines their price with

A

total cost

114
Q

the demand curve in oligopoly is

A

broken

115
Q

como sacar marginal cost en tablas

A

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

116
Q

formula para accounting benefit:

A

total income - explicit costs

117
Q

formula para el economic benefit:

A

total revenue - explicit costs - implicit costs

118
Q

formula for price elasticity

A

% change in quantity demanded entre % change in price

119
Q
A

economia (2 decks)

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