NDSU ECON 201 EXAM 4 Questions with correct Answers

NDSU ECON 201 EXAM 4 Questions with correct Answers why are perfectly competitive firms allocatively efficient? because price equals marginal cost Nate owns a tattoo parlor in downtown Fargo. on Sunday, he expects to bring in $200 in revenue and his costs are projected to be $440 for TFC and $325 for TVC. He will: earn a loss and should shut down for the day Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More For a perfectly competitive firm the demand curve facing the firm will be a horizontal line on the graph if production is occurring where marginal cost exceeds price, the perfectly competitive firm will: fail to maximize profit and resources will be over-allocated to the product in the short run a perfectly competitive firm's supply curve ins that segment of the: marginal cost curve lying above the average variable cost curve I think the perfect competition model should be called heaven instead true, I said it in class T/F...for a perfectly competitive firms the marginal revenue curve is the same as the average revenue curve true T/F...in class we agreed that producing 300 million plastic novelty hats would be a good use of resources in this country false which characteristic would best be associated with perfect competition? price taker in perfect competition: new firms are free to enter a business firm is earning profits if, at the profit maximizing quantity: price average total cost if a business is earning losses at the profit maximizing quantity, it should stay open if: price average variable cost for a simple monopolistic the demand curve facing the firm will be: a horizontal line on the graph are perfectly competitive firms allocatively efficient? yes, because price equals marginal cost T/F...in perfect competition, there are strong barriers to entry false rosa owns a pastry store in Fargo. on Sunday, he expects to bring in $500 in revenue and his costs are projected to be $600 for TFC and $300 for TVC. He will: earn a loss but should stay open for the day if production is occurring where marginal cost is less than the price, the perfectly competitive firm will: fail to maximize profits and resources will be underallocated to the product T/F...in the long run equilibrium for perfectly competitive firms, the price will settle at the lowest point of the average total cost curve true what trade policy limits the specified quantity of goods to be imported in a given period of time? quota internation trade trade between two countries what happens if the US dollar has depreciated against Japanese yen? japanese goods are more expensive for US buyers