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- 1. Multiple ChoiceIn which market structure is there the MOST competition?MonopolyOligopolyMonopolistic CompetitionPerfect Competition
- 2. Multiple ChoicePerfect competition involves:Sellers working together to set pricesA large number of buyers & sellersDifficulty entering & exiting the marketLittle information is available to buyers
- 3. Multiple ChoiceThe market for milk is an example of perfect competition. Why?Sellers offer a nearly identical productAnyone can start a dairy farm or leave the dairy business at any timeMany people buy and sell milkAll of the above
- 4. Multiple Choice
What type of market does this image represent?Perfect CompetitionMonopolistic CompetitionOligopolyMonopoly - 5. Multiple Choice
The image above shows a firm making
Economic Profit
Economic loss
Breaking even
Shutting down
- 6. Multiple Choice
Should the following firm shutdown?
Yes
No
Not enough information present
- 7. Multiple ChoiceFor a perfectly competitive firm producing the profit-maximizing quantity, the average total cost is $10 and the average variable cost is $8. If the market price for its product is $10, which of the following is true for the firm?It is sustaining a loss and should shut down.It is earning zero economic profit and will remain in business.
It will temporarily shut down until price rises.The firm is earning positive economic profit. - 8. Multiple ChoiceIn the short run, if a firm produces the level of output at which marginal revenue is equal to marginal cost but price is less than average total cost, the firm will:always shut down production
expand output to lower its average fixed costcontinue to operate if price is greater than its average variable cost
increase out put to increase revenue - Answer choicesTagsAnswer choicesTags