EC 111 Final Exam questions and
answers graded A+
Perfectly competitive market - correct answer ✔✔A market that meets the conditions of many
buyers and sellers, all firms selling identical products, and no barriers to new firms entering the
market
Price taker - correct answer ✔✔A buy or seller that is unable to affect the market price
Profit - correct answer ✔✔TR-TC
Average revenue - correct answer ✔✔TR/Q
Marginal revenue - correct answer ✔✔Change inTR/change inQ
Profit maximizing - correct answer ✔✔Level of output where marginal revenue equals marginal
cost
Turn over - correct answer ✔✔When there are goods that remain on the shelves for a long time
Stockouts - correct answer ✔✔Sales being lost because the goods consumers want to buy are
not on the shelves
Just in time - correct answer ✔✔Firms accept shipments from suppliers as close as possible to
the time the goods will be needed
answers graded A+
Perfectly competitive market - correct answer ✔✔A market that meets the conditions of many
buyers and sellers, all firms selling identical products, and no barriers to new firms entering the
market
Price taker - correct answer ✔✔A buy or seller that is unable to affect the market price
Profit - correct answer ✔✔TR-TC
Average revenue - correct answer ✔✔TR/Q
Marginal revenue - correct answer ✔✔Change inTR/change inQ
Profit maximizing - correct answer ✔✔Level of output where marginal revenue equals marginal
cost
Turn over - correct answer ✔✔When there are goods that remain on the shelves for a long time
Stockouts - correct answer ✔✔Sales being lost because the goods consumers want to buy are
not on the shelves
Just in time - correct answer ✔✔Firms accept shipments from suppliers as close as possible to
the time the goods will be needed
