marginal revenue = demand average revenue price

What is the market structure used for?

to analyze how competitive a market is & how efficient companies are

What are the 4 main market structures?

perfect competition, monopolistic competition, oligopoly, monopoly

What is a characteristic of a perfect competition?

multiple firms competing for consumer purchases

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Chapter 8 - The Competitive Firm

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Questions 12

Answers

1
The formula to find marginal revenue is
total revenue / quantity
Δtotal revenue / Δquantity
Δ cost / Δquantity
price x quantity
2
Finish the sentences:
grow , drop
crash , spike
flop , increase
drop, grow
3
What are 2 factors that can affect a firms ability to supply a product?
taxes & technology
government regulation & market structure
market equilibrium & opportunity cost of production
diminishing marginal utility & complementary goods
4
MRDARP refers to
marginal revenue = demand average revenue price
market rate of disposable annual real profits
the measurement of a firms market share
money represents demand real productivity
5
What is the market structure used for?
to manipulate consumer demand & create artificial scarcity
to regulate the prices of a goods and services
to analyze how competitive a market is & how efficient companies are
to promote unfair competition and monopolistic practices
6
A market demand curve and firm demand curve are the same
False
True
7
Lower costs will cause the supply curve to shift left, raising costs will cause the supply curve to shift right
False
True
8
What are the 4 main market structures?
monopoly, scrabble, clue, connect four
Monday, Tuesday, Wednesday, Thursday
monotonopoly, oligocrapoly, monopoly, purecapity
perfect competition, monopolistic competition, oligopoly, monopoly
9
What is a characteristic of a perfect competition?
multiple firms competing for consumer purchases
firms have the power to set their own prices
prices that are controlled by the government
prices that are determined by supply and demand
10
Fill in the blank: Less competition, _____ to be profitable. Lots of competition, _____ difficult.
harder, more
easier, less
easier, more
harder, less
11
A competitive firm can keep increasing its output without affecting the market price
True
False
12
The profit maximization rule states that a firm should produce where marginal cost equals average total cost
True
False

Chapter 8 - The Competitive Firm Flashcards | StudBud