microeconomics EXAM A+ GRADE ASSURED COMPLETE SOLUTIONS AND VERIFIED ANSWERS

EXAM

Exam Solution ms




Microeconomics Exam 3 2026 A+ GRADE ASSURED CO ms ms ms ms ms ms ms




MPLETE SOLUTIONS AND VERIFIED ANSWERS (310AE) ms ms ms ms ms




QUESTION 1 ms




Pure competitive firms maximize total profits by producing where _____________ equals __
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___________.
ANSWER

marginal revenue = marginal cost
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QUESTION 2 ms




A purely competitive firm is currently producing and selling 2,000 units per month at
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the market price/ marginal revenue of $5.60. Its marginal cost for the next unit is $5.
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The firm should: - shut down - increase production - or is maximizing profits?
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ANSWER

increase production ms




QUESTION 3 ms




Are individual firms in purely competitive markets: - price takers - or price makers?
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ANSWER

price takers ms




QUESTION 4 ms




The market for which of the following most closely approximates pure competition? -
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feed corn - breakfast cereal - computers
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ANSWER

feed corn ms

, QUESTION 5 ms




Compared to a purely competitive firm, a monopolistically competitive firm faces mor
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e/less elastic demand curve.
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ANSWER

less



QUESTION 6 ms




If three airlines service a particular route and one signals its price intentions through
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a weekly posting on its internet site and the other two quickly match, what is this cal
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led?
ANSWER

price leadership
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QUESTION 7 ms




Suppose several firms in a purely competitive industry begin to tinker with their prod
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uct designs. Because of the product differentiation, they are able to slightly increase t
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heir prices. The industry has now moved from a purely competitive industry to a _____
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________________.
ANSWER

monopolistic competition ms




QUESTION 8 ms




Antitrust authorities are unlikely to take action against conglomerate mergers becaus
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e they are likely/unlikely to create monopoly power.
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ANSWER

unlikely



QUESTION 9 ms




What type of merger would it be if a restaurant chain were to merge with a firm that
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makes paper and plastic wrappings for the chain's entrees?
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ANSWER

vertical