stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Econ test 2 Flashcards | StudBud
Explore
/
Econ test 2
Econ test 2
30 terms
·
StudBud Administration
·
49 plays
Competition and Monopolies!
Flashcards
30 cards
F
Practice quiz
P
Host live
L
Questions
30
Answers
1
If the ATC is above the demand line, a firm is not making money.
True
False
2
What is point "b"?
MR=MC
The price and quantity this firm should produce at
Consumer surplus
3
Marginal physical product (MPP)
Total output
when a company employed several workers
change in output associated with 1 unit input increase
Change in output
4
At 40 units, what is the profit?
400
0
80
180
5
If they sell 40 units, what is the total revenue?
I don't know
400
180
250
6
What happens when a firm enters a competitive industry?
output decreases and price rises
output increases and price falls
none of the above
7
What type of firm is without market power, having no ability to alter the market price of the goods it produces?
competitive firm
duopoly
monopoly
none of these
8
A few large firms supply all (or most) of a particular product is called
monopoly
none of these
oligopoly
competitive firm
9
Profit maximization rule is MR=MC
False
True
10
The marginal physical product of a variable input declines as more of it is employed is called
none of these
long run
the law of diminishing returns
short run
11
The difference between total revenue and total cost:
Total Revenue
Total Cost
Profit
MR=MC
12
What is a fixed cost?
cost of production that do change
costs of production
factors of production
cost of production that do not change
13
What happens when you don’t have market power?
factors of production
none of these
you can't alter the market price
you can alter the market price
14
Below is a graph of a
Perfectly Competitive Firm
Monopoly
None of the above
Oligopoly
15
Obstacles that make it difficult or impossible for others to enter the market
none of the above
ATC
MC=MR
barriers to entry
16
Perfectly competitive firms are price takers
False
True
17
If this firm produces 18 units, is it making money?
Nope, because it doesn't make sense
Yes, Both AVC and ATC are below the price
No, the MC does not equal MR
18
At 40 units, what is the total cost?
180
320
400
0
19
The increase in total costs associated with one-unit increase in production
None of the above
Marginal Revenue
Marginal Cost
20
The period in which the quantity and quality of some inputs cannot be changed
short run
long run
law of diminishing return
none of these
21
Is this individual firm making money?
I don't know
Yes, because MRDARP says so
None of these
No, they are breaking even
22
The ability and willingness to sell specific quantities of a good at alternative prices is
ATC
supply
demand
factors of production
23
the formula for Average total cost is
factors of production
total cost/total output
none of these
MC=MR
24
The individual firm below is making
Losses
Nothing
Profit
None of the above
25
As more labor is hired, each unit of labor has less capital and land to work with
False
True
26
The demand curve facing a perfectly competitive firm is ________
upward
horizontal
none of the above
downward
27
What quantity should this firm produce at?
PC
PM
QM
QC
28
What happened if the supply curve shifted from S2 to S1?
I don't know
None of the above
A new firm left the market
A new firm entered the market
29
Is this firm making an economic profit?
Yes, I don't know why though
None of the above
No, the ATC is above the demand curve
Yes, the AVC is below the demand curve
30
What quantity would this firm Maximize profit?
40
25
None, because the firm isn't making money
18
