Economics CH 10 Quiz

In which of the following market structures is there clear-cut mutual interdependence with respect to price-output policies?

Economists use the term imperfect competition to describe:

In which of the following industry structures is the entry of new firms the most difficult?

An industry comprised of a very large number of sellers producing a standardized product is known as:

An industry comprised of a small number of firms, each of which considers the potential reactions of its rivals in making price-output decisions, is called:

A purely competitive seller is:

Which of the following is characteristic of a purely competitive seller's demand curve?

For a purely competitive seller, price equals:

The marginal revenue curve of a purely competitive firm:

The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.

Refer to the diagram, which pertains to a purely competitive firm. Curve C represents:

Marginal revenue is the:

Firms seek to maximize:

In the short run, a purely competitive firm that seeks to maximize profit will produce:

Refer to the short-run data. The profit-maximizing output for this firm is:

A firm reaches a break-even point (normal profit position) where:

The MR = MC rule applies:

In the short run, the individual competitive firm's supply curve is that segment of the:

Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per unit. Its total fixed costs are $100 and its average variable cost is $3 at 20 units of output. This corporation:

A purely competitive firm's short-run supply curve is

A purely competitive firm should produce in the short run if its total revenue is sufficient to cover its:

In the short run, a purely competitive firm will always make an economic profit if:

In the short run, a purely competitive seller will shut down if:

The principle that a firm should produce up to the point where the marginal revenue from the sale of an extra unit of output is equal to the marginal cost of producing it is known as the:

Refer to the diagram. The firm will realize an economic profit if price is: