ECO-211
Quiz Chapter 9 Firms in a competitive market
Your work has been saved and submitted
Written Nov 4, 2025 Attempt 1 of 2
Attempt Score - 100 %
Overall Grade (Highest Attempt) - 100 %
Question 1
Which of the following is NOT true about productivity?
Labor is the most common resource to measure productivity because labor typically
constitutes 70% of total production costs.
Labor is the most common resource used to measure productivity because labor is
more easily measured than other inputs.
The resource most responsible for increasing labor productivity is capital.
Countries with lower capital per worker achieve higher labor productivity rates.
Question 2 (Mandatory)
A firm characterized as a price taker
a) is not found in a perfectly competitive market.
b) has no control over the price at which its product sells.
c) sets the price for the market.
d) has control over the price it pays or receives in the market.
e) sells at the lowest price consumers are willing to pay.
Question 3 (Mandatory)
All of the following are characteristics of perfect competition
EXCEPT
a) many buyers and sellers.
b) each firm is a price taker.
, c) lack of barriers to entry or exit.
d) similar products.
e) product differentiation.
Question 4 (Mandatory)
The perfectly competitive firm cannot influence the market price
because
a) the firm is a price maker.
b) the firm has market power.
c) the firm's production levels are too small to affect the market.
d) the firm has high costs.
e) the firm faces less competition.
Question 5 (Mandatory)
Each firm in a perfectly competitive industry
a) is producing a differentiated product.
b) faces low average total costs.
c) is relatively large.
d) is a price maker.
e) is a price taker.
Question 6 (Mandatory)
Which of the following is NOT a characteristic of a perfectly
competitive industry?
, a) Firms can easily enter or exit the industry.
b) The firms earn zero economic profit in the long run.
c) There are a large number of buyers and sellers.
d) The firms produce a similar product.
e) Sellers have better information about the product than consumers do.
Question 7 (Mandatory)
Profit maximization occurs when
a) the price in the market is equal to the firm's average total costs.
b) a firm sets the price at a point above average total cost.
c) a firm expands output until marginal revenue is equal to marginal cost.
d) a firm expands output until marginal revenue is exceeded by marginal cost.
e) total costs equal total revenue.
Question 8 (Mandatory)
When marginal revenue equals marginal cost
a) a firm should increase production.
b) a firms' profits are equal to zero.
c) a firm should shut down.
d) a firm is maximizing its profits, so it should continue at that production level.
e) a firm should decrease production.
Question 9 (Mandatory)
Quiz Chapter 9 Firms in a competitive market
Your work has been saved and submitted
Written Nov 4, 2025 Attempt 1 of 2
Attempt Score - 100 %
Overall Grade (Highest Attempt) - 100 %
Question 1
Which of the following is NOT true about productivity?
Labor is the most common resource to measure productivity because labor typically
constitutes 70% of total production costs.
Labor is the most common resource used to measure productivity because labor is
more easily measured than other inputs.
The resource most responsible for increasing labor productivity is capital.
Countries with lower capital per worker achieve higher labor productivity rates.
Question 2 (Mandatory)
A firm characterized as a price taker
a) is not found in a perfectly competitive market.
b) has no control over the price at which its product sells.
c) sets the price for the market.
d) has control over the price it pays or receives in the market.
e) sells at the lowest price consumers are willing to pay.
Question 3 (Mandatory)
All of the following are characteristics of perfect competition
EXCEPT
a) many buyers and sellers.
b) each firm is a price taker.
, c) lack of barriers to entry or exit.
d) similar products.
e) product differentiation.
Question 4 (Mandatory)
The perfectly competitive firm cannot influence the market price
because
a) the firm is a price maker.
b) the firm has market power.
c) the firm's production levels are too small to affect the market.
d) the firm has high costs.
e) the firm faces less competition.
Question 5 (Mandatory)
Each firm in a perfectly competitive industry
a) is producing a differentiated product.
b) faces low average total costs.
c) is relatively large.
d) is a price maker.
e) is a price taker.
Question 6 (Mandatory)
Which of the following is NOT a characteristic of a perfectly
competitive industry?
, a) Firms can easily enter or exit the industry.
b) The firms earn zero economic profit in the long run.
c) There are a large number of buyers and sellers.
d) The firms produce a similar product.
e) Sellers have better information about the product than consumers do.
Question 7 (Mandatory)
Profit maximization occurs when
a) the price in the market is equal to the firm's average total costs.
b) a firm sets the price at a point above average total cost.
c) a firm expands output until marginal revenue is equal to marginal cost.
d) a firm expands output until marginal revenue is exceeded by marginal cost.
e) total costs equal total revenue.
Question 8 (Mandatory)
When marginal revenue equals marginal cost
a) a firm should increase production.
b) a firms' profits are equal to zero.
c) a firm should shut down.
d) a firm is maximizing its profits, so it should continue at that production level.
e) a firm should decrease production.
Question 9 (Mandatory)
