# 國 立 高 雄 第 一 科 技 大 學 管 理 學 院 暨 財 金 學 院 學 年 度 第 1 學 期 經 濟 學 期 末 會 考 題 目 卷 ( A ) I. Production and Cost

Save this PDF as:

Size: px
Start display at page:

Download "國 立 高 雄 第 一 科 技 大 學 管 理 學 院 暨 財 金 學 院 1 0 3 學 年 度 第 1 學 期 經 濟 學 期 末 會 考 題 目 卷 ( A ) I. Production and Cost"

## Transcription

1 國 立 高 雄 第 一 科 技 大 學 管 理 學 院 暨 財 金 學 院 學 年 度 第 1 學 期 經 濟 學 期 末 會 考 題 目 卷 ( A ) I. Production and Cost 1. The short run is the time frame A. during which the quantities of all resources are fixed. B. that is less than a year. C. during which the quantities of some resources are fixed. D. during which the quantities of all resources are variable 2. Increasing marginal returns always occurs when the A. marginal product of an additional worker exceeds the marginal product of the previous worker. B. average product of an additional worker exceeds the average product of the previous worker. C. marginal product of an additional worker is less than the marginal product of the previous worker. D. average product of an additional worker is less than the average product of the previous worker. 3. Which of the following is correct about marginal and average products? A. When the marginal product is increasing, the average product must be increasing. B. When the marginal product exceeds the average product, the average product must be increasing. C. When the average product is increasing, the marginal product must be decreasing. D. When the marginal product is decreasing, the average product must be decreasing. 4. When the average product is at its maximum, A. the marginal product is increasing as output increases. B. he marginal product is negative. C. it is equal to the marginal product. D. total product is also at its maximum. 5. The average fixed cost curve A. is horizontal. B. is U-shaped. C. has an upside-down U shape. D. is always negatively sloped. 6. The total product is 10 units. The average total cost is \$30 and the average fixed cost is \$10. What is the amount of the total variable cost? A. \$20 B. \$200 C. \$300 D. \$10 7. If average variable costs increase as output increases, then A. marginal cost must be greater than average variable cost. B. total fixed cost must be increasing also. C. total cost must be constant. D. output must be zero. 8. Which of the following statements is true? A. In the long run, the average cost curve is always downward sloping. B. In the long run, the quantities of all inputs are fixed. C. In the long run, the firms' fixed costs are greater than its variable costs. D. In the long run, all costs are variable costs. 9. As output increases, economies of scale occur when the A. long-run average cost increases. B. long-run average cost decreases. C. short-run average total cost decreases. D. long-run average cost stays constant. 10. The statement, "price distributes goods and services to those that value them the most" refers to the function of price. A. rationing B. multiplicative C. store of value D. allocative 11. For entry into a particular perfectly competitive industry to occur, which of the following must be true? A. Accounting profits are equal to zero B. Accounting profits equal economic profits C. Economic profits are greater than zero D. Economic profits are equal to zero 1

2 12. The following graphs depict a perfectly competitive firm and its market. Assume that all firms in this industry have identical cost functions. Assume that the market is currently as shown in the graph on the left (i.e., price of \$8). What is true of the number of firms? A. There are currently 30 firms in the industry, and that number will remain stable until there is a change in demand or in technology. B. There are currently ten firms in this industry, and that number will remain stable until there is a change in demand or in technology. C. It is impossible to tell how many firms currently exist in this industry, but you can tell that the number of firms is likely to increase in the near future. D. There are currently ten firms in this industry, and that number is likely to increase in the near future. 13. Which ordering best describes how a perfectly competitive industry would respond to a sudden increase in popularity of the product? The market demand function will shift to the right, causing the market: A. price to increase, and a new stable equilibrium to be established at a higher price and higher quantity. B. price to increase, and all firms in the industry will earn higher profits for the foreseeable future. C. price to increase. Increased profits will encourage new firms to enter, shifting the market supply function to the right. Long-run market equilibrium will be at a higher quantity than before the surge in popularity. D. price and quantity supplied to increase. Increased profits will encourage new firms to enter shifting the market supply function upward. Long-run market equilibrium will be at a lower quantity and higher price than before the surge in popularity. 14. Refer to the figure on the right. Suppose S 2 is the industry supply curve and all firms are producing at the profit maximizing quantity. What will happen to the supply curve in the long run? A. Quantity supplied will increase but stay on the S 2 curve. B. Supply will shift to S 1 C. Supply will shift to S. D. Quantity supplied will decrease but stay on S 2 curve. 15. Economic rent is: A. the amount you pay for an apartment in a free market. B. the payment made to suppliers of an input. C. the difference between the payment made to the supplier of an input and the supplier's reservation price. D. the same as the input supplier's reservation price. 16. The main source of economies of scale is A. better management. B. constant returns to plant size. C. specialization. D. increases in the labor force not matched by increases in the plant size. 17. The marginal product of labor is A. total product divided by labor. B. the change in total product divided by the increase in labor. C. total product minus the quantity of labor. D. output that does not meet quality specifications. II. Market 18. Price-setters face: A. perfectly elastic demand. B. more than perfectly elastic demand. C. perfectly inelastic demand. D. less than perfectly elastic demand. 2

3 19. In exchange for a share in the revenues earned on campus, State U has granted CheapFizz the exclusive right to sell soft drinks in the student union and in vending machines on campus. Prior to the deal, three soft drink companies sold beverages on campus; now no other soft drink company is allowed to sell its products on campus or at university events. Refer to the information above. Prior to the deal, a 12-ounce can of CheapFizz sold for 75 cents. After the deal you would expect a 12-ounce can of CheapFizz to sell for: A. 75 cents because that is the market price. B. less than 75 cents because CheapFizz will have greater volume and so can sell for a lower price. C. more than 75 cents because demand for CheapFizz will shift to the left. D. more than 75 cents because other firms must exit the market. 20. The term "natural monopoly" refers to: A. government ownership of parks. B. industries with constant returns to scale. C. the desire of all firms to be monopolists. D. industries with economies of scale. 21. Consider an industry with two firms producing similar products. Mega Corp's total costs are TC = \$5, Quantity. Big Inc's total costs are TC = \$4, Quantity. Refer to the information given above. When each firm produces 8 units has lower costs, and when each firm produces 12 units has lower costs. A. Big Inc; Mega Corp B. Mega Corp; Big Inc C. Big Inc; Big Inc D. Mega Corp; Mega Corp 22. Consider an industry with two firms producing similar products. Mega Corp's total costs are TC = \$5, Quantity. Big Inc's total costs are TC = \$4, Quantity. Refer to the information given above. Average total costs for these firms: A. declines as quantity increases. B. increases as quantity increases. C. is constant for all quantities. D. declines as quantity increases for Mega Corp and increases as quantity increases for Big Inc. 23. The demand curve for a perfectly competitive firm is while the demand curve for a monopolist is. A. perfectly elastic; downward-sloping B. vertical; downward-sloping C. perfectly elastic; perfectly inelastic D. perfectly inelastic; perfectly elastic 24. This graph illustrates the demand faced by a firm. Refer to the figure on the right. The firm will charge a price of \$8 only if: A. marginal cost is \$8. B. marginal cost is \$0. C. average total cost is \$8. D. marginal cost is less than \$ Refer to the figure on the right. The at the socially efficient level of output will be at the profit maximizing level of output. A. loss; smaller than B. profit; smaller than C. loss; larger than D. profit; larger than 3

4 26. Which of the following is not a characteristic of a perfectly competitive market structure? A. There are a very large number of firms that are small compared to the market. B. All firms sell identical products. C. There are no restrictions to entry by new firms D. There are restrictions on exit of firms. 27. In perfect competition A. the market demand curve and the individual's demand are identical. B. the market demand curve is perfectly inelastic while demand for an individual seller's product is perfectly elastic. C. the market demand curve is perfectly elastic while demand for an individual seller's product is perfectly inelastic. D. the market demand curve is downward sloping while demand for an individual seller's product is perfectly elastic. 28. All of the following can be used to compute average profit except A. marginal profit minus marginal cost. B. total profit divided by quantity. C. average revenue minus average total cost D. price minus average total cost. 29. The key characteristics of a monopolistically competitive market structure include A. many small (relative to the total market) sellers acting independently. B. all sellers sell a homogeneous product. C. barriers to entry are strong. D. sellers have no incentive to advertise their products. 30. A monopolistically competitive firm maximizes profit where A. price = marginal revenue. B. price > marginal cost. C. marginal revenue > average revenue. D. total revenue > marginal cost. 31. An oligopoly firm is similar to a monopolistically competitive firm in that A. both firms face the prisoner's dilemma. B. both operate in a market in which there are entry barriers. C. both firms have market power. D. both firms are in industries characterized by an interdependent firm. 32. Price discrimination A. is the practice of charging different prices to different customers based on a seller's personal preferences and prejudices. B. is the practice of charging different prices to different customers based on the different costs of supplying the product to different customers. C. is the practice of charging different prices to different customers when the price differences cannot be attributed to variations in cost. D. is the practice of giving preferential treatment to certain groups of customers based on their long-standing relationship to the producer. 33. Because a monopoly's demand curve is the same as the market demand curve for its product, A. the monopoly's marginal revenue equals its price. B. the monopoly is a price taker. C. the monopoly must lower its price to sell more of its product. D. the monopoly's average total cost always falls as it increases its output. 34. Suppose a competitive firm and a monopolist are both charging \$5 for their respective outputs. You can infer that: A. the marginal benefit from an additional unit sold is \$5 for both firms. B. the marginal benefit from an additional unit sold is \$5 for the competitive firm and less than \$5 for the monopolist. C. the marginal benefit from an additional unit sold is less than \$5 for both firms. D. the competitive firm is charging too much and the monopolist too little. 4

5 Answers 1 C 9 B 17 B 25 C 33 C 2 A 10 A 18 D 26 D 34 B 3 A B 11 C 19 D 27 D 4 C 12 D 20 D 28 A 5 D 13 C 21 A 29 A 6 B 14 B 22 A 30 B 7 A 15 C 23 A 31 C 8 D 16 C 24 B 32 C 5

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MBA 640 Survey of Microeconomics Fall 2006, Quiz 6 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A monopoly is best defined as a firm that

### Microeconomics Instructor Miller Practice Problems Monopolistic Competition

Microeconomics Instructor Miller Practice Problems Monopolistic Competition 1. A monopolistically competitive market is described as one in which there are A) a few firms producing an identical product.

### Chapter 13 Perfect Competition

Chapter 13 Perfect Competition 13.1 A Firm's Profit-Maximizing Choices 1) What is the difference between perfect competition and monopolistic competition? A) Perfect competition has a large number of small

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Chapter 11 Monopoly practice Davidson spring2007 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A monopoly industry is characterized by 1) A)

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MPP 801 Perfect Competition K. Wainwright Study Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Refer to Figure 9-1. If the price a perfectly

### Perfect Competition. Chapter 12

CHAPTER CHECKLIST Perfect Competition Chapter 12 1. Explain a perfectly competitive firm s profit maximizing choices and derive its supply curve. 2. Explain how output, price, and profit are determined

### Microeconomics Instructor Miller Perfect Competition Practice Problems

Microeconomics Instructor Miller Perfect Competition Practice Problems 1. Perfect competition is characterized by all of the following except A) heavy advertising by individual sellers. B) homogeneous

### Learning Objectives. Chapter 6. Market Structures. Market Structures (cont.) The Two Extremes: Perfect Competition and Pure Monopoly

Chapter 6 The Two Extremes: Perfect Competition and Pure Monopoly Learning Objectives List the four characteristics of a perfectly competitive market. Describe how a perfect competitor makes the decision

### Economics 103h Fall 2012: Part 1 of review questions for final exam

Economics 103h Fall 2012: Part 1 of review questions for final exam This is the first set of review questions. The short answer/graphing go through to the end of monopolistic competition. The multiple

### Firms in Perfectly Competitive Markets

Chapter 11 Firms in Perfectly Competitive Markets Chapter Outline 11.1 LEARNING OBJECTIVE 11.1 Perfectly Competitive Markets Learning Objective 1 Define a perfectly competitive market, and explain why

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Chapter 11 Perfect Competition - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Perfect competition is an industry with A) a

### UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES. Monopolistic Competition

UNIT 6 cont PRICING UNDER DIFFERENT MARKET STRUCTURES Monopolistic Competition Market Structure Perfect Competition Pure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on

### 1 of 18 10/19/ :51 PM

1 of 18 10/19/2013 12:51 PM Which of the following is true about a competitive market supply curve? It is horizontal. It is downward-sloping to the right. It is the sum of the marginal cost curves of all

### Lab #11. Chapter 11 Perfect Competition

University of Lethbridge Department of Economics ECON 1010 Introduction to Microeconomics Instructor: Michael G. Lanyi Lab #11 Chapter 11 Perfect Competition 1) Perfect competition occurs in a market where

### Chapter 6 Competitive Markets

Chapter 6 Competitive Markets After reading Chapter 6, COMPETITIVE MARKETS, you should be able to: List and explain the characteristics of Perfect Competition and Monopolistic Competition Explain why a

### Practice Questions Week 8 Day 1

Practice Questions Week 8 Day 1 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The characteristics of a market that influence the behavior of market participants

### ECON 202: Principles of Microeconomics. Chapter 11 Firms in Perfectly Competitive Markets

ECON 202: Principles of Microeconomics Chapter 11 Firms in Perfectly Competitive Markets Firms in Perfectly Competitive Markets 1. Market Structures. 2. Perfectly Competitive Markets. 3. Maximizing Profit

### Answers to Text Questions and Problems Chapter 8

Answers to Text Questions and Problems Chapter 8 Answers to Review Questions 1. The pure monopolist, the oligopolist, and the monopolistically competitive firm all face downward-sloping demand curves.

### Chapter. Perfect Competition CHAPTER IN PERSPECTIVE

Perfect Competition Chapter 10 CHAPTER IN PERSPECTIVE In Chapter 10 we study perfect competition, the market that arises when the demand for a product is large relative to the output of a single producer.

### A. a change in demand. B. a change in quantity demanded. C. a change in quantity supplied. D. unit elasticity. E. a change in average variable cost.

1. The supply of gasoline changes, causing the price of gasoline to change. The resulting movement from one point to another along the demand curve for gasoline is called A. a change in demand. B. a change

### Unit 7. Firm behaviour and market structure: monopoly

Unit 7. Firm behaviour and market structure: monopoly Learning objectives: to identify and examine the sources of monopoly power; to understand the relationship between a monopolist s demand curve and

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MBA 640, Survey of Microeconomics Fall 2006, Final Exam Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The "law of demand" states that, other

### PART 1: MULTIPLE CHOICE

ECN 201, Winter 1999 NAME: Prof. Bruce Blonigen SS#: MIDTERM 2 - Version A Tuesday, February 23 **************************************************************************** Directions: This test is comprised

### The Revenue of a Competitive In perfect competition, average revenue equals the price of the good. Total revenue Average Revenue = = The Revenue of a

In this chapter, look for the answers to these questions: What is a perfectly competitive market? What is marginal revenue? How is it related to total and average revenue? How does a competitive firm determine

### Describe the characteristics of different market structures: perfect competition, monopolistic competition, oligopoly, and pure monopoly

www.edupristine.com Describe the characteristics of different market structures: perfect competition, monopolistic competition, oligopoly, and pure monopoly Prerequisite Characteristics of different market

### Unit 3 Practice Exam Answer the questions on a separate sheet of paperplease do not write on this practice test.

Unit 3 Practice Exam Answer the questions on a separate sheet of paperplease do not write on this practice test. 1. Which of the following items is most likely to be an implicit cost of production? a.

### Econ 111 (04) 2nd Midterm A

Econ 111 (04) 2nd Midterm A MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which one of the following does not occur in perfect competition? A)

### Economics 100 Exam 2

Name: 1. During the long run: Economics 100 Exam 2 A. Output is limited because of the law of diminishing returns B. The scale of operations cannot be changed C. The firm must decide how to use the current

### 1. An economic institution that combines factors of production into outputs for consumers is a(n): A) industry. B) plant. C) firm. D) multinational.

Miami Dade College ECO 2023 Principles of Microeconomics Summer B 2014 Practice Test #3 1. An economic institution that combines factors of production into outputs for consumers is a(n): A) industry. B)

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Perfect competition occurs in a market where there are A) a few firms producing goods which differ

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Economics 103 Spring 2012: Multiple choice review questions for final exam. Exam will cover chapters on perfect competition, monopoly, monopolistic competition and oligopoly up to the Nash equilibrium

### Monopoly. Problem 1 (APT 93, P3) Sample answer:

Monopoly Problem 1 (APT 93, P3) A single airline provides service from City A to City B. a) Explain how the airline will determine the number of passengers it will carry and the price it will charge. b)

### Chapter 7 Monopoly, Oligopoly and Strategy

Chapter 7 Monopoly, Oligopoly and Strategy After reading Chapter 7, MONOPOLY, OLIGOPOLY AND STRATEGY, you should be able to: Define the characteristics of Monopoly and Oligopoly, and explain why the are

### Pre-Test Chapter 22 ed17

Pre-Test Chapter 22 ed17 Multiple Choice Questions 1. Refer to the above diagram. At the profit-maximizing level of output, total revenue will be: A. NM times 0M. B. 0AJE. C. 0EGC. D. 0EHB. 2. For a pure

### Unit 5.3: Perfect Competition

Unit 5.3: Perfect Competition Michael Malcolm June 18, 2011 1 Market Structures Economists usually talk about four market structures. From most competitive to least competitive, they are: perfect competition,

### Chapter 11 Perfect Competition

Chapter 11 Perfect Competition Perfect Competition Conditions for Perfectly competitive markets Product firms are perfect substitutes (homogeneous product) Firms are price takers Reasonable with many firms,

### Problems on Perfect Competition & Monopoly

Problems on Perfect Competition & Monopoly 1. True and False questions. Indicate whether each of the following statements is true or false and why. (a) In long-run equilibrium, every firm in a perfectly

### Managerial Economics & Business Strategy Chapter 8. Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Managerial Economics & Business Strategy Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets I. Perfect Competition Overview Characteristics and profit outlook. Effect

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Chap 13 Monopolistic Competition and Oligopoly These questions may include topics that were not covered in class and may not be on the exam. MULTIPLE CHOICE. Choose the one alternative that best completes

### Chapter 9: Perfect Competition

Chapter 9: Perfect Competition Perfect Competition Law of One Price Short-Run Equilibrium Long-Run Equilibrium Maximize Profit Market Equilibrium Constant- Cost Industry Increasing- Cost Industry Decreasing-

### Exam No. 3 Date: 7 or 9 May Instructor: Brian B. Young

Economics 212 Microeconomic Principles Exam No. 3 Date: 7 or 9 May 2012 Name The value of this exam is 100 points Instructor: Brian B. Young Please show your work where appropriate! Multiple Choice 2 points

### Figure: Computing Monopoly Profit

Name: Date: 1. Most electric, gas, and water companies are examples of: A) unregulated monopolies. B) natural monopolies. C) restricted-input monopolies. D) sunk-cost monopolies. Use the following to answer

### Online Review Copy. AP Micro Chapter 8 Test. Multiple Choice Identify the choice that best completes the statement or answers the question.

AP Micro Chapter 8 Test Multiple Choice Identify the choice that best completes the statement or answers the question. 1. There would be some control over price within rather narrow limits in which market

### 1 st Exam. 7. Cindy's cross-price elasticity of magazine demand with respect to the price of books is

1 st Exam 1. Marginal utility measures: A) the total utility of all your consumption B) the total utility divided by the price of the good C) the increase in utility from consuming one additional unit

### Student Name: Date: Teacher Name: Heather Creamer. Score:

Economics EOC Quiz Answer Key Microeconomic Concepts - (SSEMI1) Flow Of Goods, (SSEMI2) Law Of Demand, (SSEMI3) Economic Behavior, (SSEMI4) Organization And Role Of Business Student Name: Teacher Name:

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Practice for Perfect Competition Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following is a defining characteristic of a

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Exam Four - Sample Questions Chapters 12-14 MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) What is the difference between perfect competition

### Eco 200 Group Activity 4 Key Chap 13 & 14 & 15

Eco 200 Group Activity 4 Key Chap 13 & 14 & 15 Chapter 13: 1. 4 th Edition: p. 285, Problems and Applications, Q4 3 rd Edition: p. 286, Problems and Applications, Q4 a. The following table shows the marginal

### Pure Competition Pure Monopoly Monopolistic Competition Oligopoly

Pure Competition Pure Monopoly Monopolistic Competition Oligopoly Characteristics: Rare in the real world But helps analyze industries which are similar to pure competition Many sellers means that no one

### 11 PERFECT COMPETITION. Chapter. Competition

Chapter 11 PERFECT COMPETITION Competition Topic: Perfect Competition 1) Perfect competition is an industry with A) a few firms producing identical goods B) a few firms producing goods that differ somewhat

### An increase in the number of students attending college. shifts to the left. An increase in the wage rate of refinery workers.

1. Which of the following would shift the demand curve for new textbooks to the right? a. A fall in the price of paper used in publishing texts. b. A fall in the price of equivalent used text books. c.

### Summary Chapter 12 Monopoly

Summary Chapter 12 Monopoly Defining Monopoly - A monopoly is a market structure in which a single seller of a product with no close substitutes serves the entire market - One practical measure for deciding

### COST OF PRODUCTION & THEORY OF THE FIRM

MICROECONOMICS: UNIT III COST OF PRODUCTION & THEORY OF THE FIRM (C) positive and \$0 positive. At zero output, variable costs are zero. 2. Based on the information in the table above, the total cost of

### Monopoly. Chapter 13. Monopoly and How It Arises. Single-price Monopoly. Monopoly and Competition Compared. Price Discrimination

CHAPTER CHECKLIST Monopoly Chapter 13 1. Explain how monopoly arises and distinguish between single-price monopoly and price-discriminating monopoly. 2. Explain how a single-price monopoly determines its

### Economies of Scale, Imperfect Competition, and International Trade

Economies of Scale, Imperfect Competition, and International Trade Chapter 6 Intermediate International Trade International Economics, 5 th ed., by Krugman and Obstfeld 1 Overview patterns of trade can

### Lecture 6 Part I. Markets without market power: Perfect competition

Lecture 6 Part I Markets without market power: Perfect competition Market power Market power: Ability to control, or at least affect, the terms and conditions of the exchanges in which one participates

### Monopolistic Competition 13A CHAPTER

Monopolistic Competition 13A CHAPTER After studying this chapter you will be able to Define and identify monopolistic competition Explain how output and price are determined in a monopolistically competitive

### D) Marginal revenue is the rate at which total revenue changes with respect to changes in output.

Ch. 9 1. Which of the following is not an assumption of a perfectly competitive market? A) Fragmented industry B) Differentiated product C) Perfect information D) Equal access to resources 2. Which of

### Pricing and Output Decisions: i Perfect. Managerial Economics: Economic Tools for Today s Decision Makers, 4/e By Paul Keat and Philip Young

Chapter 9 Pricing and Output Decisions: i Perfect Competition and Monopoly M i l E i E i Managerial Economics: Economic Tools for Today s Decision Makers, 4/e By Paul Keat and Philip Young Pricing and

### C H A P T E R E L E V E N. P e r f e c t c o m p e t i t i o n

C H A P T E R E L E V E N P e r f e c t c o m p e t i t i o n Assume for the moment that you have completed your business training and that you are working for some consulting firm. The first assignment

### 5. The supply curve of a monopolist is A) upward sloping. B) nonexistent. C) perfectly inelastic. D) horizontal.

Chapter 12 monopoly 1. A monopoly firm is different from a competitive firm in that A) there are many substitutes for a monopolist's product but there are no substitutes for a competitive firm's product.

### Econ 101, section 3, F06 Schroeter Exam #4, Red. Choose the single best answer for each question.

Econ 101, section 3, F06 Schroeter Exam #4, Red Choose the single best answer for each question. 1. Profit is defined as a. net revenue minus depreciation. *. total revenue minus total cost. c. average

### Econ 202 Exam 3 Practice Problems

Econ 202 Exam 3 Practice Problems Principles of Microeconomics Dr. Phillip Miller Multiple Choice Identify the choice that best completes the statement or answers the question. Chapter 13 Production and

### Chapter 11 Perfect Competition

These notes provided by Laura Lamb are intended to complement class lectures. The notes are based on chapter 11 of Microeconomics and Behaviour 2 nd Canadian Edition by Frank and Parker (2004). Chapter

### MPP 801 Monopoly Kevin Wainwright Study Questions

MPP 801 Monopoly Kevin Wainwright Study Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The marginal revenue facing a monopolist A) is

### c. Given your answer in part (b), what do you anticipate will happen in this market in the long-run?

Perfect Competition Questions Question 1 Suppose there is a perfectly competitive industry where all the firms are identical with identical cost curves. Furthermore, suppose that a representative firm

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron.

Principles of Microeconomics Fall 2007, Quiz #6 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron. 1) A monopoly is

### (Perfect) Competition

(Perfect) Competition (Perfect) Competition The model of perfect competition is based on the following assumptions: (Perfect) Competition The model of perfect competition is based on the following assumptions:

### How Wages Are Determined in Labor Markets

ACTIVITY 4-5 How Wages Are Determined in Labor Markets This activity examines how wages and employment are determined in two types of labor s. A perfectly competitive labor is one in which all buyers and

### Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!!

Practice Multiple Choice Questions Answers are bolded. Explanations to come soon!! For more, please visit: http://courses.missouristate.edu/reedolsen/courses/eco165/qeq.htm Market Equilibrium and Applications

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron.

Principles of Microeconomics, Quiz #5 Fall 2007 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question on the accompanying scantron. 1) Perfect competition

### Test 3: April 5, 2002

Test 3: April 5, 2002 Multiple Choice 50 points (1 each) Answer the questions on the Scantron sheet. Select the best answer for each question. (See answers on the last page) 1. If the supply curve shifts

### Econ 170: Contemporary Economics Spring 2008 Exam 1 / Section F: SOLUTIONS. 1. Production possibilities and opportunity costs of missiles and houses

Econ 170: Contemporary Economics Spring 2008 Exam 1 / Section F: SOLUTIONS 1. Production possibilities and opportunity costs of missiles and houses The table below shows the tradeoff between different

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Chapter 12 Monopoly - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Unregulated monopolies A) cannot change the market quantity.

### CHAPTER 12 MARKETS WITH MARKET POWER Microeconomics in Context (Goodwin, et al.), 2 nd Edition

CHAPTER 12 MARKETS WITH MARKET POWER Microeconomics in Context (Goodwin, et al.), 2 nd Edition Chapter Summary Now that you understand the model of a perfectly competitive market, this chapter complicates

### Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets

Managerial Economics & Business Strategy Chapter 8 Managing in Competitive, Monopolistic, and Monopolistically Competitive Markets McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All

### MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

Chapter 10 - Output and Costs - Sample Questions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) The short run is a period of time in which A)

### Bertrand with complements

Microeconomics, 2 nd Edition David Besanko and Ron Braeutigam Chapter 13: Market Structure and Competition Prepared by Katharine Rockett Dieter Balkenborg Todd Kaplan Miguel Fonseca Bertrand with complements

### Market Structure: Perfect Competition and Monopoly

WSG8 7/7/03 4:34 PM Page 113 8 Market Structure: Perfect Competition and Monopoly OVERVIEW One of the most important decisions made by a manager is how to price the firm s product. If the firm is a profit

### Rutgers University Economics 102: Introductory Microeconomics Professor Altshuler Fall 2003

Rutgers University Economics 102: Introductory Microeconomics Professor Altshuler Fall 2003 Answers to Problem Set 10 Chapter 15 1. The following table shows revenue, costs, and profits, where quantities

### How Does A Monopolistically Competitive Market Function?

How Does A Monopolistically Competitive Market Function? Perfect Competition Monopolistic Competition Oligopoly Pure Monopoly I. Characteristics of Monopolistic Competition: Relatively Large Number of

### CHAPTER 9: PURE COMPETITION

CHAPTER 9: PURE COMPETITION Introduction In Chapters 9-11, we reach the heart of microeconomics, the concepts which comprise more than a quarter of the AP microeconomics exam. With a fuller understanding

### Firms in Perfectly Competitive Markets

Chapter 11 Firms in Perfectly Competitive Markets Chapter Summary Economists group industries into one of four market structures: Perfect competition, monopolistic competition, oligopoly, and monopoly.

### Monopoly. Recall that in the previous chapter on perfect competition we also defined monopoly as follows:

I. What is a monopoly market? Monopoly Recall that in the previous chapter on perfect competition we also defined monopoly as follows: 1. Lots of buyers only one seller 2. Single firm is the market. 3.

### Monopolistic Competition

CHAPTER 13A After studying this chapter you will be able to Monopolistic Define and identify monopolistic competition Explain how output and price are determined in a monopolistically competitive industry

### 11 PERFECT COMPETITION. Chapter. Key Concepts. Perfectly Competitive Firm s Demand Curve

Chapter 11 PERFECT COMPETITION Key Concepts FIGURE 11.1 Perfectly Competitive Firm s Demand Curve Competition Perfect competition is an industry with many firms, each selling an identical good; many buyers;

### Chapter 16 Monopolistic Competition and Product Differentiation

Goldwasser AP Microeconomics Chapter 16 Monopolistic Competition and Product Differentiation BEFORE YOU READ THE CHAPTER Summary This chapter develops the model of monopolistic competition. It also discusses

### Equilibrium of a firm under perfect competition in the short-run. A firm is under equilibrium at that point where it maximizes its profits.

Equilibrium of a firm under perfect competition in the short-run. A firm is under equilibrium at that point where it maximizes its profits. Profit depends upon two factors Revenue Structure Cost Structure

### UNIT 6. Pricing under different market structures. Perfect Competition

UNIT 6 ricing under different market structures erfect Competition Market Structure erfect Competition ure Monopoly Monopolistic Competition Oligopoly Duopoly Monopoly The further right on the scale, the

### Market Structure: Monopolistic Competition

WSG9 7/7/03 4:34 PM Page 131 9 Market Structure: Monopolistic Competition OVERVIEW Although the conditions necessary for the existence of perfect competitive and monopoly are unlikely to be found in the

### Chapter 16 Monopolistic Competition and Oligopoly

Chapter 16 Monopolistic Competition and Oligopoly Market Structure Market structure refers to the physical characteristics of the market within which firms interact It is determined by the number of firms

### monopsony Chapter 8 CHAPTER SUMMARY

Chapter 8 Monopoly CHAPTER SUMMARY Market power arises from unique resources, intellectual property, scale and scope economies, regulation, or product differentiation. A seller with market power restrains

### Lecture 8: Market Structure and Competitive Strategy. Managerial Economics September 11, 2014

Lecture 8: Market Structure and Competitive Strategy Managerial Economics September 11, 2014 Focus of This Lecture Examine optimal price and output decisions of managers operating in environments with

### Monopolistic Competition

In this chapter, look for the answers to these questions: How is similar to perfect? How is it similar to monopoly? How do ally competitive firms choose price and? Do they earn economic profit? In what

### Chapter 8 Production Technology and Costs 8.1 Economic Costs and Economic Profit

Chapter 8 Production Technology and Costs 8.1 Economic Costs and Economic Profit 1) Accountants include costs as part of a firm's costs, while economists include costs. A) explicit; no explicit B) implicit;

### OUTPUT AND COSTS. Chapter. Decision Time Frames

Chapter 10 OUTPUT AND COSTS Decision Time Frames Topic: Short Run 1) The short run is a period of time in which A) the quantities of some resources the firm uses are fixed. B) the amount of output is fixed.

### 11 PERFECT COMPETITION. Chapt er. Key Concepts. What is Perfect Competition?

Chapt er 11 PERFECT COMPETITION Key Concepts What is Perfect Competition? Perfect competition is an industry with many firms, each selling an identical good; many buyers; no restrictions on entry into