ECON 2020 LATEST UPDATED WITH COMPLETE Exam 4 (Finck, Auburn University) QUESTIONS AND SURE VERIFIED SOLUTIONS 100% GRADED AT A+ SCORE!!

ECON 2020 LATEST UPDATED WITH COMPLETE Exam 4 (Finck, Auburn University) QUESTIONS AND SURE VERIFIED SOLUTIONS 100% GRADED AT A+ SCORE!! Types of market structures - ANSWER perfect competition monopolistic competition oligopoly monopoly Characteristics of perfect competition - ANSWER 1) Many, small buyers and sellers 2) standardized products (perfect substitutes) 3) Perfect information 4) No barriers to entry What happens when P is constant? - ANSWER P= MR for all levels of output Profit maximization rule - ANSWER MR=MC Point of profit maximization - ANSWER q*= where MR and MC intercept or equal MR= - ANSWER the change of TR If MR>MC - ANSWER the firm will increase q* If MR<MC - ANSWER the firm will decrease q* Implication of many, small buyers and sellers in perfect competition - ANSWER No individual can affect Pe or Qe Implication of standardized products in perfect competition - ANSWER firm Ed= infinity, no advertising Implication of perfect information in perfect competition - ANSWER Firms are price takers (set q only) Implication of no barriers to entry in perfect competition - ANSWER LR profit= 0 Profit - ANSWER TR-TC When a firm produces and sells an additional unit of a good then - ANSWER TR and TC both increase Marginal Revenue - ANSWER The additional revenue earned from selling 1 additional unit. Standardized products - ANSWER characteristic of perfect competition, perfect substitutes Price taker - ANSWER Firms take the price from markets in perfect competition, can only set quantity Price Maker - ANSWER Set the price TR= - ANSWER P*Q TC= - ANSWER ATC*Q P>ATC in SR - ANSWER Positive Profit