ECON 201 : Microeconomics for Business - Weekly Quizzes 1-7 AMU

Week 1 Quiz (Chapters 1 & 2) Completed 2024 - Winter Question 1 10 / 10 points The branch of economics that examines the impact of choices on aggregates in the economy is: Question options: positive economics. normative economics. macroeconomics. microeconomics. Question 2 10 / 10 points When we are forced to make choices, we are facing the concept of: Question options: ceteris paribus. free goods. scarcity. the margin. Question 3 10 / 10 points An economic system is the set of rules that define _______ and _______ . Question options: ECON 201 : Microeconomics for Business - Weekly Quizzes 1-7 AMUresources; prices who gets to vote; when elections will be held market prices; factors of production how an economy's resources are to be owned; how decisions about the resources are to be made Question 4 10 / 10 points In a market capitalist economy: Question options: factors of production are owned privately and decisions about their use are basically made by individ factors of production are owned by the government but decisions about their use are made privatel private ownership exists but decisions about resource allocation are usually made centrally by the go there is no role for the government. Question 5 10 / 10 points The branch of economics that examines the choices of consumers and firms is: Question options: positive economics. normative economics. economics. Question 6 10 / 10 points Scarcity in economics means: Question options: not having sufficient resources to produce all the goods and services we want. the wants of people are limited. there must be poor people in rich countries. economists are clearly not doing their jobs. Question 7 10 / 10 points The basic concern of economics is: Question options: to keep business firms from losing money. to prove that capitalism is better than socialism. to study the choices people make. to use unlimited resources to produce goods and services to satisfy limited wants. Question 8 10 / 10 points Whenever a choice is made: Question options:the value of all the other choices that could have been made is called opportunity cost. normative economics is encountered. the problem of "all other things unchanged" results. the opportunity cost of that choice is value of the next best alternative Question 9 10 / 10 points Economics is different from other social sciences because it gives special emphasis to the study of ______; it is similar to other social sciences because they are all concerned with the study of _______. Question options: unlimited resources; economic systems human interactions; limited resources opportunity costs; choices social behavior; scarcity PPC 1 Question 10 10 / 10 points (Exhibit: Production Possibilities Curve-Military and Civilian Goods) A movement from point G to H on Curve 1 would: Question options: require giving up military goods in order to get more civilian ate that, in this economy, there is no scarcity. require giving up civilian goods to get more military goods. require greater efficiency in the production of civilian goods. Question 11 10 / 10 points (Exhibit: Production Possibilities Curve-Military and Civilian Goods) If an economy is at point U, and its production possibilities curve is Curve 1, this would indicate that: Question options: resources are fully employed. economic growth has taken place. there is inefficiency and/or unemployment. the economy is maximizing its economic objectives. Question 12 10 / 10 points (Exhibit: Production Possibilities Curve-Military and Civilian Goods) If the economy is represented by Curve 1, then: Question options: point E is unattainable at the present time. point G is superior to point H. point H is superior to point G. factors of production are not being used efficiently.PPS 1 Question 13 10 / 10 points (Exhibit: Production Possibilities Schedule) If the economy is producing at alternative X, the opportunity cost to it of producing at Y instead of X is _______ units of consumer goods per period. Question options: 0 6 8 14 Question 14 10 / 10 points (Exhibit: Production Possibilities Schedule) If an economy is producing at alternative W, the opportunity cost to it of producing at X is _______ unit(s) of consumer goods per period. Question options: 0 1 4 18 Question 15 0 / 10 points (Exhibit: Production Possibilities Schedule) A move from alternative Y to alternative X would:Question options: result in greater unemployment. decrease potential growth. increase potential growth. result in greater underemployment. Question 15 0 / 10 points (Exhibit: Production Possibilities Schedule) A move from alternative Y to alternative X would: Question options: result in greater unemployment. decrease potential growth. Increase potential growth. result in greater underemployment.Question 1 10 / 10 points A shift of a demand curve to the right, all other things unchanged, will: Question options: increase equilibrium price and quantity. decrease equilibrium price and quantity. decrease quantity and increase price. increase quantity and decrease price. Question 2 10 / 10 points If the current price is above the equilibrium price, we would expect: Question options: quantity demanded to exceed quantity supplied. upward pressure on price. quantity supplied to exceed quantity demanded. no change in the market price. Question 3 10 / 10 points Demand is defined as: Question options: an amount that is purchased at a specific price, given supply. a schedule that establishes the price of a good. a schedule that shows how much will be purchased at various prices during aparticular period, all other things unchanged. the amount that will be bought at a specific price. Question 4 10 / 10 points The primary difference between a change in demand and a change in the quantity demanded is: Question options: a change in demand is a movement along the demand curve, and a change in quantity demanded is a shift in t a change in quantity demanded is a movement along the demand curve, and a change in demand is a shift in the demand curve. both a change in quantity demanded and a change in demand are shifts in the demand curve, only in different both a change in quantity demanded and a change in demand are movements along the demand curve, only i Question 5 10 / 10 points A negative relationship between the quantity demanded and price is called the law of ______. Question options: demand diminishing marginal returns market clearing supply Question 6 10 / 10 points The relationship between the quantity of a good or service sellers are willing and able to offer for sale and the independent variables that determine quantity is: Question options:supply. demand. equilibrium. disequilibrium. Question 7 10 / 10 points A price below the equilibrium price will: Question options: result in pressure for price to rise. result in a surplus. never be the case. result in pressure for price to fall. Question 8 0 / 10 points It is true that the equilibrium quantity will always go up if supply: Question options: and demand both increase. increases and demand decreases. and demand both decrease. decreases and demand remains unchanged. Question 10 / 10 points9 The intersection of the supply and demand curves indicates: Question options: the equilibrium solution in the market. a surplus that will cause the price to fall. a shortage that will cause the price to rise. the quantity demanded exceeds the quantity supplied. Question 10 10 / 10 points A decrease in supply means: Question options: a shift to the left of the entire supply curve. moving downward (to the left) along the supply curve with lower prices. less will be demanded at every price. more will be supplied at every price. Demand & Supply Schedule Question 11 0 / 10 points (Exhibit: Demand and Supply Schedules for a Good) The equilibrium price is ________ and the equilibrium quantity is ________. Question options: $2.00; 230 units$3.00; 240 units $4.00; 210 units impossible to determine; impossible to determine Question 12 0 / 10 points (Exhibit: Demand and Supply Schedules for a Good.) If there were an increase in demand by 50 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively. Question options: $2.00; 310 $2.50; 295 $3.00; 290 $3.50; 250 Question 13 10 / 10 points (Exhibit: Supply and Demand Schedules for a Good) If there were a decrease in supply by 100 units at each price, the equilibrium price and quantity would be ________ and ________ units, respectively. Question options: $2.00; 100 $3.00; 140 $3.50; 175 $4.00; 160 Demand and Supply ShiftersQuestion 14 0 / 10 points (Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose consumer incomes increase. Which panel best describes how this will affect the market for dress ties, a normal good? Question options: Panel (a) Panel (b) Panel (c) Panel (d) Question 15 0 / 10 points (Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the Surgeon General announces that eating chocolate prevents heart disease. Which panel best describes how this will affect the market for chocolate? Question options: Panel (a) Panel (b) Panel (c) Panel (d) Question 16 0 / 10 points (Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose oil becomes more expensive. Which panel best describes how this will affect the market for gasoline, which is made from oil? Question options:Panel (a) Panel (b) Panel (c) Panel (d) Question 17 0 / 10 points (Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose half the people in San Diego move to Colorado Springs. Which panel best describes how this will affect the market for houses in Colorado Springs? Question options: Panel (a) Panel (b) Panel (c) Panel (d) Question 18 10 / 10 points (Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose half the people in San Diego pack up and move to Colorado Springs. Which panel best describes how this will affect the supply of houses in San Diego? Question options: Panel (a) Panel (b) Panel (c)Panel (d) Question 19 0 / 10 points (Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events. Suppose the technology for producing handheld calculators improves. Which panel best describes how this will affect the market for handheld calculators? Question options: Panel (a) Panel (b) Panel (c) Panel (d)AMU ECON 201 Week 3 Quiz Question 1 10 / 10 points Demand is price inelastic if: (O the price of the good responds slightly to a quantity change. () the demand curve shifts very little when a demand shifter changes. the percentage change in quantity demanded is relatively small in response to a relatively large @ percentage change in price. () all of the above are true. Question 2 10 / 10 points If the absolute value of price elasticity is greater than 1, this means the demand curve in that region is: (® price elastic. () price inelastic. () unit price elastic. () upward sloping. Question 3 10 / 10 points Which of the following will lead to a decrease in total revenue? () price goes up and demand is perfectly inelastic () price goes up and demand is price inelastic () price declines and demand is price elastic (®) price increases and demand is price elastic Question 4 10 / 10 points If total revenue goes up when price falls, the price elasticity of demand is said to be: () price inelastic. () unit price elastic. @ price elastic. () positive.“anse avud un “onseja aud “onsejaur 92ud O0O0® ‘ajqe3sun :s13onpoud s,uLy 3y} Jo puewap U3 e sagea1pul SIy} “0ud S}1 SASIEL 31 UBYM UELD JOU S0P WL € AQ PAAISIB ANUAASI (10} B §] sui0d 0T / 0T g uonsand ‘g ueyy sojeass O g ueyy ss3)3nq T vewy Jajeas8 O ‘Tojenbe ® T ueyy s3] Inq 010z veyy Jareais O 51 puewap o Aynse}d 221ud ay3 JO anjeA SINJosqe 3y 20UaH a1 Jad £§ Sem adud ALy uayM Aep Jad saiy awes 3y 4o 0g PIOS Inq 313 Jad G¢ sem ao1d B UBYM Aep 1ad 51} OF O ABEIAAE UE PJOS BI0IS 31 SUBW Y/ sjutod 0T / 0T £ uonsanp -anpesau skeme @ T 03 fenba Ajiensn O T ueyy sayeass skempe O ‘anmsod skempe O 1 puewsap o Ajpnsee 2ud ay sui0d 0T / 0T 9 uogsanty “papuewap Ayauenb uj aSuey e 03 annd puewap ayy o adojs O “a0ud ur a8ueyd e 03 amNd puewap ayy Jo adojs O ‘papuewap Ayuenb uy ssueyd e 0y adud O “22ud uy a8ueyd e 03 papuewsp Aguenb © wu1 aBueyp 313 J0 SsBUBNISUOASAI AU} SBINSEAW PUBWAP JO AIRSE[S 31id sjui0d 0T / 0T 5 uonsandQuestion 9 10/ 10 points The ratio of the percentage change in a dependent variable to the percentage change in an independent variable, all other things unchanged, is: O total revenue. O production possib @ elasticity. O slope. Question 10 10/ 10 points The price elasticity of a good will tend to be greater: @® the longer the relevant time period. (O the fewer number of substitute goods available. O ifitis a staple or necessity with few substitutes. © Allof the above are true. Question 11 10/ 10 points. (Exhibit: Supply and Demand in Agriculture) To help farmers: @® aprice floor would be set at P, causing a surplus of Q - Qq. () aprice floor would be set at P, causing a surplus of Q, - Q. O aprice ceiling would be set at Py, causing a surplus of Q - Q1. () aprice floor would be set at Py, causing a shortage of Qg - Qoanoqe 3y} Jo auou sjeuiuLIRIapul [Oele] 61- 6 O £522$ PUE 05'Z$ UsaMIaq puBWISp Jo ApNsers 201id 34 s11eYM (T AdNsel3 231id pue puewaq 3iq1yx3) sjuiod 0T / 0T 1 uonsand ‘an13 aq pinom anoge a3 Jo fle. ) “H203S Paje|NUN2E )1 J0 N0 JUBWUIBAOS 33 Aq dn apew aq pinom aseioys Sunynsas syl O -payddns g pjnom 3eaym Jo sipysnq ey @ T4 03 [lej pnom 2o1d 3y3 ‘JaxJew 3y} uo Jeaym yonw siyy ym O SIXE [E9IBA B U UMOYS SAdpd 23 40 30 3e 100}y 32ud BAFIBE UE 35 JUBWILIBAOS BU3 Jj (BINYNdLBY U puBwaQ pue Addns JqIXE) sjutod 0T / 0T £ uonsand .8 3n0qe 3y} J0 auou () - O 1p-tp O 0p-tp @ 20 jenba 3ndino 4o Junowe ue aseydind o} Y PINOM JUBLILIZACS By} ‘PaseyaNd 3q (1M INGINO JIBU] Jey} SIBULIE) BINSSE O} SJUEM JUBLILIIACS PUE W0UI Jo Swa) Uy sIBuLIey djay 03395 S| pd 1 00}y dud € J| (2aMNOLBY Ul puewaq pue Alddng 3iqiyx3) syutod 0T / 0T 21 uonsandQuestion 14 10/ 10 points (Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $2.50 and $2.25? 0 ® -19 O indeterminate O none of the above Question 15 10/ 10 points (Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $2.25 and $2.00? ® 567 O -4.00 O -9.00 O 176 Question 16 10/ 10 points (Exhibit: Demand and Price Elasticity 1) What is the price elasticity of demand between $1.75 and $1.50? -0.42 -1.5 -1.86 none of the above 0O®0O0AMU ECON 201 Week 4 Midterm Question 1 5/ 5 points Economics is the study of: () increasing the level of productive resources so there is maximum output in society. () increasing the level of productive resources so there is a minimum level of income. (® how people, institutions, and society make choices under conditions of scarcity. the efficient use of scarce resources paid for at the minimum level of cost to consumers and O businesses. Question 2 5/ 5 points Which of the following is not a central focus of the "economic perspective"? () Scarcity and choice. (@) The scientific method. (") Purposeful behavior. () Marginal analysis. Question 3 5/ 5 points The satisfaction or pleasure one gets from consuming a good or service is: () price. @® utility. () consumption. () preferences. Question 4 5/ 5 points The private ownership of property resources and use of prices to direct and coordinate economic activity is characteristic of: () acommand system. (®) a market system. () communism. () socialism.*spoo3 Jouaul Ajuessadau ase Asyy O “19Y30 3y} 10} PUBISP B} SSESIOUI [|IM 3UO JO 20ud 3y} U aseansp e @ *11430 B} 10§ PUBWISP B} BSERL0U [l1M BUO J0 3dd B Ut Bseaut e () “Anuapuadapu; pawnsuod ase Asuy O :SpuBWwaldwo aJe SPO0S oMy 4 suodg /g 8 uosend “AyApE JJwouoss sBeinoous @ swiqosd owouods ajean O “UIMOIE o1Wwou09s anmPNsap il O Juswisanul Aessaoauun sonpat () :Aau) asne23q Jue 10w 1€ Sy ALiadoid pauaD-liam WaIsAS JxEw € U] sodg /g £ uonsend *$321n0s31 2A139Npoid UMO 03 JySU 3y} suonelodiod pue sienpiapul ajeaud ® “suopjelodiod pue s|enpiAIpul Xe} 03 381 3y} Juswuianos ayy sang O *spoos |e3iden ueyy spoos awnsuod aiow sanpoid O *sp0oS Jawnsuoo ueyy spoos [endes aiow sanposd () 3y waysAs owiouo0s ue S| wsiiendeD sodg /g 9 uonsand “JuawuIeA0S yBnoiu Aluewyid pauLI}ap S SEIAISS uE SPOOS JO UOEDOIfE PuE uoaNpoId By “Sjovsew ySnoauy Ajuewnd pauiuLIB}ap S| S30IAISS PUE SPOOS JO UOREDOIIE PUE UoRANPOId BUL “Sytiew Aq AjUewiid paUILLIBIEP S1 S3IIAISS PUE SPOO3 () 10 UoREVOIIE 33 INq YuBWILIBACS Aq Ajuiewiid PaULLIBIEP S| SA0IAISS PUE SPOOS JO UORANPOId BUL “JuBwuIEA0S Aq Ajuewyd paujuLIsiep S| sadnas pue 5p00S J0 uoREDOIIE BUF ING ‘SIMtEw Aq Aluiewiid PaULLIBIEP S| SAVIAISS PuE SPOOS 40 UoRANPOId BUL ZAwouoda Jsiiended € S3qLI0Sap 1590 JUBWIES UDIUM suodg /g G uonsandQuestion 9 5/5 points When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. In this range of prices, demand for this product is: @ elastic. O inelastic. O cross-elastic. © unitary elastic. Question 10 5/5 points Demand can be said to be inelastic when: O anincrease in price results in a reduction in total revenue. O a reduction in price results in an increase in total revenue. @® areduction in price results in a decrease in total revenue. () the elasticity coefficient exceeds one. Question 11 5/5 points Economic growth is shown by a shift of the production possibilities curve outward and to the right. @® True O False Question 12 5/5 points The four factors of production are land, labor, capital, and government services. O True ® False Question 13 5/5 points If demand increases and supply simultaneously decreases, equilibrium price will rise. ® Tree [a}Question 14 5/5 points Property rights have a positive effect in a market economy because they encourage owners to maintain their property. @® True O False Question 15 5/5 points In the price range where demand is inelastic, a decrease in price will result in a decrease in total revenue. @® True O False Question 16 5/5 points Price elasticity of supply decreases the longer the time period. O True @® False Question 17 5/5 points Toothpaste and toothbrushes are substitute goods. O True @® False Question 18 5/5 points A government-set price ceiling will lower equilibrium price and quantity in a market. O True @® FalseQuestion 19 5/5 points (Exhibit: Demand for Shirts) The price elasticity of demand for the segment AB is: O 13 ® 11 O 091 O 01 Question 20 5/5 points (Exhibit: Demand for Shirts) The price elasticity of demand for the segment BC is: (@] greater than 3.33 (absolute value). O -3.33. (O] -3. O -033. Question 21 5/5 points (Exhibit: Demand for Shirts) The price elasticity of demand for the segment CD is: @ greater than 1 (absolute value). O -1 O 071Question 22 (Exhibit: Markets and Efficiency) In panel (a): O the price of apples is $0.80 and the quantity demanded is Q1. O the equilibrium price ensures that quantity demanded will match quantity supplied. O the equilibrium price ensures that there will be neither surpluses nor shortages. @ all of the above are true. Question 23 (Exhibit: Markets and Efficiency) The equi of apples s: © less than $0.80. @® equal to $0.80. (O egreater than $0.80. O equal to the average cost of producing apples. 5/5 points 5/5 points rium price in Panel (a) tells us that the marginal cost of a poundQuestion 24 5/5 points (Exhibit: Markets and Efficiency) The price and marginal cost in Panel(a) are equal because of: @® the marginal decision rule. O the law of demand. © the law of supply. © thelaw of increasing cost. Question 25 5/5 points (Exhibit: Markets and Efficiency) What is the marginal benefit to a producer of an extra pound of apples in Panel (a)? @ Itis the price the producer receives. O Itis the price the consumer receives. © Itis the price the producer pays. © ltisall of the above. Question 26 5/5 points (Exhibit: Markets and Efficiency) What is the marginal cost of an extra pound of apples to a producer in Panel(a)? O Itis greater than the price. @ Itis the value that must be given up to produce an extra pound of apples. O It must be less than the price. © Itis the cost of the least satisfactory apples. Question 27 5/5 points (Exhibit: Markets and Efficiency) In Panel (b) demand shifted from D1 to D2, reflecting a change in consumer preferences. The price of apples will change to the new equilibrium price: () Where the marginal benefit of apples is again equal to the marginal cost. (O of $0.70. () Where an efficient solution s again achieved. (@ that s described by all of the above.AMU ECON 201 Week 5 Quiz Question 1 10 / 10 points Average variable cost is: () the firm's variable cost per unit multiplied by the quantity. (®) total variable cost divided by quantity. () the difference between average total cost and total variable cost. () the difference between total cost and total variable cost. Question 2 10 / 10 points Which of the following is (are) correct? () Firms are organizations that produce goods and services. () Firms seek to maximize profits. () Firms seek to utilize factors of production in the most efficient way in order to maximize profits. (®) All of the above are correct. Question 3 10 / 10 points For a restaurant: () labor and food would be variable factors of production. () a building would be a fixed factor of production in the short run. () fire insurance on a building would be a fixed factor of production. (®) A and B are correct. Question 4 10 / 10 points Diminishing marginal returns means that: () each additional unit of an input used will decrease output. (@) each additional unit of an input used will increase output, but by smaller and smaller amounts. (") each additional unit of an input used will increase output by larger and larger amounts.Question 5 10/ 10 points When marginal cost is below average variable cost, average variable cost must be: O atits minimum. Q atits maximum. ® falling. O rising. Question 6 10/ 10 points If a firm produces 10 units of output and incurs $30 in average variable cost and $5 in average fixed cost, average total cost is: O $30. ® $35. O $50. O $300. Question 7 10/ 10 points In the long run: O allinputs are fixed. © inputs are neither variable nor fixed. O atleast one input is variable and one input is fixed. @ allinputs are variable. Question 8 10/ 10 points Afactor of production whose quantity can be changed during a particular period is a: © marginal factor of production. O fixed factor of production. O incremental factor of production. @ variable factor of production.Question 9 10/ 10 points Given constant quantities of all other factors of production, when additional units of a variable factor of production add less and less to total output, then the firm is experiencin O constant marginal returns. © increasing marginal returns. ® diminishing marginal returns. © negative marginal returns. Question 10 10/ 10 points The sum of fixed and variable costs is: @ total cost. marginal cost. average cost. (e} O variable cost. (e} [ —— Gy | Teal | Teal Bugesper Tt Varatie o || Pixed Com { S—— % ® ") 1 —" - ") s Question 11 10/ 10 points (Exhibit: Costs of Producing Bagels) The total cost of producing six bagels is: O s0.10. O $0.20. O $0.80. @® $0.90.Question 12 10/ 10 points (Exhibit: Costs of Producing Bagels) The average total cost of producing six bagels is: O so.10. @® $0.15. O $0.20. O $0.80. Question 13 10/ 10 points. (Exhibit: Costs of Producing Bagels) The marginal cost of producing the sixth bagel is: O so.10. O $0.15. @® $0.20. O $0.80. Question 14 10/ 10 points. (Exhibit: Costs of Producing Bagels) The total cost of producing two bagels is: O so.10. O $0.20. @® $0.40. O $0.50.Question 15 10/ 10 points (Exhibit: Short-Run Costs) Curve A is the _ cost curve. O average total O average variable @® marginal O total Question 16 10/ 10 points (Exhibit: Short-Run Costs) Curve B is the _ _ cost curve. @® average total © average variable © marginal O total Question 17 10/ 10 points (Exhibit: Short-Run Costs) Curve A crosses the average variable cost curve at: @® approximately 2.8 units of output. © approximately 5.3 units of output. © the minimum value of curve B. O the level of output where diminishing marginal returns begin. Question 18 10/ 10 points (Exhibit: Short-Run Costs) Curve A crosses the average total cost curve at: @ the minimum value of Curve B. O approximately 4.3 units of output. © approximately 2.8 units of output. © none of the above points.Question 18 10/ 10 points (Exhibit: Short-Run Costs) Curve A crosses the average total cost curve at: @ the minimum value of Curve B. © approximately 4.3 units of output. © approximately 2.8 units of output. O none of the above points. Question 19 15/ 15 points. (Exhibit: Short-Run Costs) Curve A declines from a cost of about $50 and a quantity of 1 to a cost of about $40 and a quantity of 2 (point F) at which time it rises again. The declining segment is due to _ marginal returns, and the rising segment is due to __ _ marginal returns. O decreasing; increasing © diminishing; increasing ® increasing; diminishing © increasing; constant Question 20 15/ 15 points (Exhibit: Short-Run Costs) At 7 units of output, average fixed cost is approximately ___ variable cost is approximately __ and average O $100; $100 O $10;$135 @® $40;$ 100 O $140; $140AMU ECON 201 Week 6 Quiz Week 6 Quiz (Chapter 9 & 10) Attempt Score170 /170 - 100 % Overall Grade (Highest Attempt)170 / 170 - 100 % Question 1 10 / 10 points Perfect competition is characterized by: (O rivalry in advertising. () fierce quality competition. (®) the inability of any one firm to influence price. () widely recognized brands. Question 2 10 / 10 points An industry that contains a firm that is the only producer of a good or service for which there are no close substitutes and for which entry by potential rivals is prohibitively difficult is: (O aduopoly. (®) a monopoly. (") an oligopoly. () perfect competition. Question 3 10 / 10 points Which of the following is true in a perfectly competitive market? (®) One unit of a good or service cannot be differentiated from any other on any basis. () Brand preferences exist but are very slight. () Barriers to entry are relatively strong. () Information is costly.Question 4 10/ 10 points. The assumptions of perfect competition imply that: @ individuals in the market accept the market price as given. O individuals can influence the market price. O the price will be a fair price. O the price will be low. Question 5 10/ 10 points. Which of the following is true? () Price and average revenue are never equal. O Price and marginal revenue are seldom equal under conditions of perfect competition. When a firm is operating under perfectly competitive market conditions, price and marginal cost will always be equal if the firm is maximizing profits. () Average revenue equals price times quantity. Question 6 10/ 10 points If a firm possesses monopoly power, it means that: @ the firm can set its own price based on its output decision. O the firm's demand curve is always elastic. O the firm is necessarily a monopoly. O Aand Care true. Question 7 10/ 10 points Marginal revenue: O isthe slope of the average revenue curve. @ equals the market price in perfect competition. O isthe change in quantity divided by the change in total revenue. ) isthe price divided by the changes in quantity. Question 8 10/ 10 points. Anatural monopoly exists whenever a single firm: O is owned and operated by the federal or local government. O isinvestor owned but granted the exclusive right by the government to operate in a market. @ confronts economies of scale over the entire range of production that is relevant to its market. () has gained control over a strategic input of an important production process.Question 9 10/ 10 points. Which of the following is (are) true? © Amonopoly firm is a price taker. O MR Pif the demand curve is downward sloping. ® MR =MCis a profit-maximizing rule for any firm. O Allof the above are true. Question 10 10/ 10 points Perfect competition is important to study because it: @ is a theoretical extreme used for analysis. O isarealistic model of a few key markets. () isarealistic model of many different markets. () avoids all real-world problems and complexities.Perfectly Competitive Firm in the Short Run Question 11 10/ 10 points. (Exhibit: A Perfectly Competitive Firm in the Short Run) The firm's total cost of producing its most profitable level of output is: O Bs. O DK @ OFKD. ©) OESB. Question 12 10/ 10 points. (Exhibit: A Perfectly Competitive Firm in the Short Run) The firm's total revenue from the sale of its most profitable level of output is: @® OGLD. O 0GHB. O BH. O DL Question 13 10/ 10 points. (Exhibit: A Perfectly Competitive Firm in the Short Run) The firm's total economic profit at its most profitable level of output is: O 0GHB. O FEFss. O EGHS. @® FGLK. Question 14 10/ 10 points. (Exhibit: A Perfectly Competitive Firm in the Short Run) The firm will shut down in the short run if the price falls below: O 0G. O oF. O O @® Op.Computing Monopoly Profit e Question 15 10/ 10 points. (Exhibit: Computing Monopoly Profit) The profit-maximizing price is __ economic profit of __ ___and will generate total ) PEF O P3; the rectangle P1P2FG © p3; the rectangle P2PIEF P2; EF Question 16 10/ 10 points (Exhibit: Computing Monopoly Profit) In order to obtain maximum profits, the monopoly should produce the output determined by point __ @G ON OH oK Question 17 10/ 10 points (Exhibit: Computing Monopoly Profit) Total economic profit at the profit-maximizing level of output is: O R O EFtimesQ. O price minus average total cost times the quantity where MR = MC. @ described by Band C.AMU ECON 201 Week 7 Quiz: Monopolistic Competition Insights Question 1 10 / 10 points Monopolistic competition is an industry characterized by a: (O small number of firms producing identical products, with barriers to entry for firms. (O small number of firms producing similar products, with relatively easy entry for firms. ® large number of firms producing similar products, with relatively easy entry for firms. () large number of firms producing identical products, with relatively easy entry for firms. Question 2 10 / 10 points Imperfect competition is: (O a market structure with no more than one firm in the industry. () anindustry in which all firms are price takers. (® a market structure where firms have a degree of monopoly power. (O described by all of the above. Question 3 10 / 10 points Imperfect competition includes: (® monopolistic competition and oligopoly. (O monopolistic competition and monopoly. (O perfect competition and monopoly. O monopoly and oligopoly. Question 4 10 / 10 points A firm in monopolistic competition maximizes its profit by producing at the level at which: O MC=ATC. O MC=AR. O MC=P. @ MC=MR.Question 5 10 /10 points An industry characterized by many firms, producing similar but differentiated products, in a market with easy entry and exit is called: O perfect competition. O monopoly. @ monopolistic competition. O oligopoly. Question 6 10 /10 points An oligopoly knows that its affect(s)its_______andthatthe ______ofits rivals will affect it. @ actions; rivals; reactions O price changes ; total revenue in a positive way; reactions O actions rarely; rivals; actions O price increases; total revenue in the long run only: large but not small price changes Question 7 10 /10 points A concentration ratio is used to measure: O efficiency. O diseconomies of scale. O marginal cost. @ market dominance. Question 8 10 /10 points An industry dominated by a few firms, where each of those firms recognizes that its own choices will affect the choices of its rivals and that its rivals' choices will affect it, s a(n): O monopoly. oligopoly. monopolistic competition. perfect competition. OO0®Question 9 of 10 10.0 Points Price for a firm under monopolistic competition is: A.equal to marginal revenue. . © B.greater than marginal revenue. 1 Clless than marginal revenue. ‘s D.greater than total revenue. Question 10 of 10 10.0 Points Unwritten or unspoken understandings through which firms collude to restrict competition are called: "+ A.cartelization. B.oligopolizatio s + Covert collusion. v D.tacit collusion.