A. Products are heavily differentiated

C. Consumer have limited information

D. A few firms dominate the market

A. All of these answers represent competitive markets

C. electricity

D. cola

E. cable television

A. many buyers and sellers

B. perfect information

C. a standard product

D. free entry and exit

A. The price equals total cost

C. Firms are allocatively inefficient

D. The price equals the total revenue

A. The goods offered for sale are largely the same.

B. All of these answers are characteristic of a competitive market

C. The are many buyers and sellers in the market

D. Firms can freely enter or exit the market

A. marginal cost equals output

C. marginal revenue equals output

D. long run average cost is lowest

A. Short run marginal cost rises, output rises

B. long run marginal cost rises, output rises

D. Short run average cost rises, output rises

B. Firms make normal profits in the long run

C. All products are homogeneous

D. Firms face a perfectly elastic demand curve

A. perfectly inelastic supply curve

B. perfectly elastic supply curve

D. perfectly inelastic demand curve

A. price equals total cost

B. price equals total revenue

C. price is greater than marginal revenue

A. A few firms dominate the industry

B. Firms are price makers

D. There are many buyers but few sellers

A. total costs of staying open are greater than the total revenue due to staying open

B. total costs of staying open are less than the total revenue due to staying open

C. variable costs of staying open are less than the total revenue due to staying open.

A. maintained production at the current level

C. decreased production

D. temporarily shut down.

A. Producer different products

C. Believes that can influence price

D. Prevents the entry of competitors

B. inputs are minimized

C. output is maximized

D. Costs are minimized

A. decreasing returns to scale

C. an inefficient production technique

D. constant returns to scale

A. is always perfectly elastic

C. is always less elastic than the short-run market supply curve

D. has the same elasticity as the short run market supply curve

A. downward sloping

C. perfectly elastic

D. perfectly inelastic

B. Price

C. Place

D. Presence

A. None of the above

C. Price is greater than marginal cost

D. price is less than marginal cost

A. price is between short run average total cost and short run average variable cost

C. profit is zero

D. price is greater than short run average total cost

A. Total revenue = Total variable cost

C. price = average cost = total cost

D. price = marginal cost = total cost

A. less than average cost, less than average cost

B. greater than average cost, greater than average cost

D. greater than average cost, less than average cost

B. Buyer power is higher

C. Rivalry is lower

D. Substitute threat is higher

A. The price covers variable cost

B. The price covers average fixed cost

D. The price covers fixed costs

A. more than double

B. cannot be determined because the price of the good may rise or fall

D. less than doubles.

B. Under Sales Procedure

C. Unit Sales Point

D. Underlying Sales Proposition

A. Total revenue is maximized

B. Marginal revenue equals zero

D. Marginal revenue equals average cost

A. Short run abnormal profits are competed away by the government

B. Short run abnormal profits are competed away by greater advertising

D. Short run abnormal profits are completed away by firms leaving the industry

B. marginal cost

C. average revenue

D. marginal revenue

A. zero economic profit

B. their efficient scale

C. intersection of marginal cost and marginal revenue

E. the minimum of their average-total-cost curves

A. price equals average variable cost

B. marginal cost equals total revenue

D. marginal revenue equals average revenue

A. average revenue divided by the quantity sold

B. equal to the quantity of the good sold

D. total revenue divided by the quantity sold

A. portion of the marginal cost curve that lies above the average variable cost curve.

B. upward-sloping portion of the average total cost curve

C. upward-sloping portion of the average variable cost curve

D. entire marginal cost curve

A. the price equals the average variable cost

C. the price equals the total cost

D. the fixed cost equals the variable costs

A. upward-sloping portion of the average variable cost curve

B. Upward-sloping portion of the average total cost curve

D. entire marginal cost curve.

E. portion of the marginal cost curve that lies above the average total cost curve.

A. vertical

B. elastic

C. downward sloping

A. Marginal revenue = price

B. Demand is perfectly elastic

D. Products are homogeneous

B. Maximum efficient scale

C. Efficient scale

D. Average efficient scale

B. Marginal revenue = Total cost

C. Marginal revenue = Marginal cost

D. Marginal revenue = Average revenue

A. The average cost will shift downwards

B. The average variable cost will increase

C. the demand curve will shift inwards

A. Buyer power is high

B. Entry threat is low

D. Supplier power is high

A. constant returns to scale

C. decreasing returns to scale

D. the minimum efficient scale

B. When they are increasing

C. When they are declining

D. When marginal revenue is zero

B. upward sloping

C. perfectly inelastic

D. downward sloping

A. SMC below SAVC, LMC bellow LAC

B. SMC below SAVC, LMC above LAC

C. SMC, LMC

A. Supply more price inelastic

B. Demand more income elastic

C. Demand more price inelastic

A. an increase the price of the good and an increase in the number of firms in the market

B. no impact on either the price of the good or the number of firms in the market

D. an increase the price of the good but no increase in the number of firms in the market

A. There are few buyers

C. There are few sellers

D. There are many sellers

A. Short run variable costs, profit

B. Short run average variable costs, profit

D. Short run opportunity costs, profit