AGB 144 Ch. 8 quiz

Marginal revenue is the: A. change in product price associated with the sale of one more unit of output. B. change in average revenue associated with the sale of one more unit of output. C. difference between product price and average total cost. D. change in total revenue associated with the sale of one more unit of output.

Refer to the above diagram for a purely competitive producer. The lowest price at which the firm should produce (as opposed to shutting down) is: A. P1. B. P2. C. P3. D. P4.

Curve (3) in the above diagram is a purely competitive firm's: A. total cost curve. B. total revenue curve. C. marginal revenue curve. D. total economic profit curve.

The MR = MC rule applies: A. to firms in all types of industries. B. only when the firm is a "price taker." C. only to monopolies. D. only to purely competitive firms.

Which of the following industries most closely approximates pure competition? A. agriculture B. farm implements C. clothing D. steel

"For a purely competitive seller, price equals: " A. average revenue. B. marginal revenue. C. total revenue divided by output. D. all of these.

"The demand curve in a purely competitive industry is _____, while the demand curve to a single firm in that industry is _____. " "A. perfectly inelastic, perfectly elastic" "B. downsloping, perfectly elastic" "C. downsloping, perfectly inelastic" "D. perfectly elastic, downsloping"

Refer to the above diagram for a purely competitive producer. The firm's short-run supply curve is: A. the abcd segment and above on the MC curve. B. the bcd segment and above on the MC curve. C. the cd segment and above on the MC curve. D. not shown.

Which of the following is not a characteristic of pure competition? A. price strategies by firms B. a standardized product C. no barriers to entry D. a larger number of sellers

A purely competitive seller is: A. both a "price maker" and a "price taker." B. neither a "price maker" nor a "price taker." C. a "price taker." D. a "price maker."