Micro

An industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product, is an example of:

Which of the following statements applies to a purely competitive producer?

A purely competitive seller is:

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

If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue:

Price is constant to the individual firm selling in a purely competitive market because:

For a purely competitive firm, total revenue:

A competitive firm in the short run can determine the profit-maximizing (or loss-minimizing) output by equating:

The MR = MC rule can be restated for a purely competitive seller as P = MC because:

Which of the following is not a valid generalization concerning the relationship between price and costs for a purely competitive seller in the short run?

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:

Answer the question on the basis of the following data confronting a firm: Picture 1 16 16 Refer to the data. This firm is selling its output in a(n):

Answer the question on the basis of the following data confronting a firm: Picture 1 16 10 Refer to the data. At the profit-maximizing output, the firm's total revenue is:

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

Suppose that at 500 units of output marginal revenue is equal to marginal cost. The firm is selling its output at $5 per unit and average total cost at 500 units of output is $6. On the basis of this information, we:

A firm finds that at its MR = MC output, its TC = $1,000, TVC = $800, TFC = $200, and total revenue is $900. This firm should:

Picture Refer to the diagram for a purely competitive producer. The lowest price at which the firm should produce (as opposed to shutting down) is:

Picture Refer to the diagram. To maximize profit or minimize losses, this firm will produce:

Picture Refer to the diagram. At the profit-maximizing output, total fixed cost is equal to:

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market: Picture 1 100.00 17.00 117.00 17 Refer to the data. If the market price for the firm's product is $12, the competitive firm should produce:

DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should:

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. Picture 1 150.00 25.00 175.00 25.00 Refer to the data. The marginal cost column reflects:

Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market. Picture 1 150.00 25.00 175.00 25.00 Refer to the data. If the market price for this firm's product is $35, it will produce:

Suppose a firm in a purely competitive market discovers that the price of its product is above its minimum AVC point but everywhere below ATC. Given this, the firm:

Which of the following will not hold true for a competitive firm in long-run equilibrium?

Picture Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. Which of the following is correct?

If a purely competitive constant-cost industry is realizing economic profits, we can expect industry supply to:

Under pure competition in the long run:

Creative destruction is least beneficial to:

Which of the following is not a barrier to entry?

A natural monopoly occurs when:

If a nondiscriminating imperfectly competitive firm is selling its 100th unit of output for $35, its marginal revenue:

Answer the question on the basis of the demand schedule shown below: Picture 7 1 Refer to the data. The marginal revenue obtained from selling the third unit of output is:

A monopolistic firm has a sales schedule such that it can sell 10 prefabricated garages per week at $10,000 each, but if it restricts its output to 9 per week it can sell these at $11,000 each. The marginal revenue of the tenth unit of sales per week is:

Picture Refer to the diagram. This firm is selling in:

The vertical distance between the horizontal axis and any point on a nondiscriminating monopolist's demand curve measures:

Picture Which of the diagrams correctly portrays a nondiscriminating pure monopolist's demand (D) and marginal revenue (MR) curves?

Picture Which of the diagrams correctly portrays the demand (D) and marginal revenue (MR) curves of a pure monopolist that is able to price discriminate by charging each customer his or her maximum willingness to pay?

Picture 1 100 100 100.00 30 Refer to the data for a nondiscriminating monopolist. This firm will maximize its profit by producing:

Picture 1 100 100 100.00 30 Refer to the data. At its profit-maximizing output, this firm's total revenue will be:

Picture Refer to the diagram. To maximize profits or minimize losses, this firm should produce:

Economic profit in the long run is:

Answer the question on the basis of the following information for a pure monopolist: Picture 0 250 500 The given nondiscriminating monopolist should set its price at:

If a regulatory commission wants to establish a socially optimal price for a natural monopoly, it should select a price:

Picture Refer to the diagram for a natural monopolist. If a regulatory commission set a maximum price of P2, the monopolist would:

The Sherman Act was designed to:

The Clayton Act of 1914:

Tying contracts are illegal under the:

Suppose Slow Ketchup requires that, as a condition of purchase, all restaurants using its product must buy and make available its new sales product. This arrangement is an example of:

Which of the following gave the Federal Trade Commission responsibility to protect the public against false and misleading advertising?

Price-fixing:

Which of the following is most likely to increase the Herfindahl index of a particular industry?

A conglomerate merger:

Answer the question on the basis of the following table showing market shares of firms in hypothetical industries. Assume these are distinct industries with no buyer-seller relationships or competition among them. Picture 30 30 20 20 - - Refer to the table. The Herfindahl index for Cappa is:

Suppose the firms in a five-firm industry have market shares of 30, 30, 20, 10, and 10 percent, respectively. The Herfindahl index for the industry is:

The legal cartel theory of regulation argues that:

The restaurant, legal assistance, and clothing industries are each illustrations of:

Economic analysis of a monopolistically competitive industry is more complicated than that of pure competition because:

Monopolistically competitive and purely competitive industries are similar in that:

The monopolistically competitive seller's demand curve will become more elastic the:

A monopolistically competitive firm's marginal revenue curve:

In the long run, a profit-maximizing monopolistically competitive firm sets it price:

Monopolistically competitive firms:

Picture Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit-maximizing price will be:

Picture Refer to the diagram. The monopolistically competitive firm shown:

When a monopolistically competitive firm is in long-run equilibrium:

Answer the question on the basis of the following demand and cost data for a specific firm: Picture 11.00 10.00 6 6 61 Refer to the data. If columns (1) and (3) of the demand data shown are this firm's demand schedule, the profit-maximizing level of output will be:

Answer the question on the basis of the following demand and cost data for a specific firm: Picture 11.00 10.00 6 6 61 Refer to the data. If columns (1) and (3) of the demand data shown are this firm's demand schedule, the profit-maximizing price will be:

Answer the question on the basis of the following demand and cost data for a specific firm: Picture 11.00 10.00 6 6 61 Refer to the data. If columns (1) and (3) of the demand data shown are this firm's demand schedule, economic profit will be:

Product variety is likely to be greater in:

The mutual interdependence that characterizes oligopoly arises because:

Concentration ratios measure the:

The Herfindahl index for a pure monopolist is:

Concentration ratios may be inaccurate indicators of the degree of monopoly power in an industry because:

Assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl index for this industry is:

Picture a 20 Refer to the data. The industry characterized by the information is:

Game theory can be used to demonstrate that oligopolists:

Picture Refer to the diagram where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. If both firms follow a high-price policy:

Picture Refer to the diagram where the numerical data show profits in millions of dollars. Beta's profits are shown in the northeast corner and Alpha's profits in the southwest corner of each cell. With independent pricing, the outcome of this duopoly game will gravitate to cell:

If an oligopoly is faced with a kinked-demand curve that is relatively elastic above, and relatively inelastic below, the going price, then it will:

Picture Refer to the diagram. Equilibrium price is:

Secret conspiracies to fix prices are examples of:

We would expect a cartel to achieve:

The marginal revenue product schedule is:

Marginal product is:

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is:

A competitive employer should hire additional labor as long as:

A profit-maximizing firm employs resources to the point where:

Answer the question on the basis of the following information for Manfred's Shoe Shine Parlor. Assume Manfred hires labor, its only variable input, under purely competitive conditions. Shoe shines are also sold competitively. Picture 0 0 - - Refer to the given data. At what price does each shoe shine sell?

Assume that a restaurant is hiring labor in an amount such that the MRC of the last worker is $16 and her MRP is $12. On the basis of this information, we can say that:

Answer the question on the basis of the information given in the following table: Picture 0 0 3 Refer to the given data. If the firm is hiring workers under purely competitive conditions at a wage rate of $22, it will employ:

Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by:

Answer the question on the basis of the data contained in the following table. Assume that the firm is hiring labor in a purely competitive market. Picture Refer to the given data. If the wage rate is $20, how many workers will the firm choose to employ?

Other things equal, we would expect the labor demand curve of a monopolistic seller to:

Answer the question on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information. The marginal revenue product of the second worker is:

Answer the question on the basis of the following information. A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. Refer to the given information. What is the farmer's profit-maximizing output?

A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm:

Suppose the demand for strawberries rises sharply, resulting in an increased price for strawberries. As it relates to strawberry pickers, we could expect the:

A decline in the price of resource A will:

Assume that an appliance manufacturer is employing variable resources X and Y in such amounts that the MRPs of the last units of X and Y employed are $100 and $60 respectively. Resource X can be hired at $50 per unit and resource Y at $20 per unit. The firm:

Answer the question on the basis of the following marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Picture 1 25 1 40 Refer to the given data. Assuming the prices of resources a and b are $5 and $8 respectively, what is the least costly combination of resources for the firm to employ in producing 192 units of output?

Answer the question on the basis of the following marginal product data for resources a and b. The output of these independent resources sells in a purely competitive market at $1 per unit. Picture 1 25 1 40 Refer to the given data. Assuming the prices of resources a and b are $5 and $8 respectively, when the firm hires the profit-maximizing combination of resources, its economic profit will be:

If MPa/Pa = MPb/Pb and MRPa/Pa = MRPb/Pb > 1, this firm is:

If a firm is hiring variable resources D and F in perfectly competitive input markets, it will minimize the cost of producing any level of output by employing D and F in such amounts that:

Answer the question on the basis of the following data: Picture 1 15 45 1 8 24 Refer to the given data. If the prices of labor and capital are $9 and $15 respectively, at the profit-maximizing level, the firm's total output will be:

Answer the question on the basis of the following data: Picture 1 15 45 1 8 24 Refer to the given data. If the prices of labor and capital are $9 and $15 respectively, and labor and capital are the only inputs, the firm's economic profits will be:

Answer the question on the basis of the following information: Suppose a firm hires both labor (L) and capital (C) under purely competitive conditions. The price of labor is PL and that of capital is PC. The marginal product of labor is MPL and that of capital is MPC. The firm sells its product competitively at a price of PX. Refer to the given information. In competitive labor markets, the marginal cost of an additional unit of labor:

Which of the following distinguishes the short run from the long run in pure competition?

If a purely competitive firm is producing at the MR = MC output level and earning an economic profit, then:

Assume a purely competitive, increasing-cost industry is in long-run equilibrium. If a decline in demand occurs, firms will: