ECN Exam Study Guide 2026 | Economics Review, Practice Questions & Test Prep
A competitive firms short-run supply curve is a part of what curve? - ANS ✔✔Marginal cost
In the long run, a firm will enter a competitive industry if... - ANS ✔✔Total revenue exceeds
total cost, the price exceeds average total cost, the firm can earn economic profits.
A firm has market power if it can... - ANS ✔✔Influence the market price of the good it sells
In a market with 1000 identical firms, the short-run market supply is the.. - ANS ✔✔Sum of the
quantities supplied by each of the 1000 individual firms at each price
At the profit maximizing level of output.. - ANS ✔✔Marginal revenue equals marginal cost
A competitive firm is currently producing a quantity of output which marginal revenue exceeds
marginal cost. In order to increase its profit, the firm should... - ANS ✔✔Increase its quantity of
output
A firm in a competitive market has the following cost structure: if the firms fixed cost of
production is $3, and the market price is $10, how many units should the firm produce to
maximize profit? - ANS ✔✔3 units
A firm will shut down in the short run if the total revenue that it would get from producing and
selling its output is less than its - ANS ✔✔Variable costs
Competitive markets are characterized by - ANS ✔✔Free entry and exit by firms
Mrs. Smith is operating a firm in a competitive market. The market price is $6.50. At her profit
maximizing level of output, her average total cost of production is $7, and her average variable
A competitive firms short-run supply curve is a part of what curve? - ANS ✔✔Marginal cost
In the long run, a firm will enter a competitive industry if... - ANS ✔✔Total revenue exceeds
total cost, the price exceeds average total cost, the firm can earn economic profits.
A firm has market power if it can... - ANS ✔✔Influence the market price of the good it sells
In a market with 1000 identical firms, the short-run market supply is the.. - ANS ✔✔Sum of the
quantities supplied by each of the 1000 individual firms at each price
At the profit maximizing level of output.. - ANS ✔✔Marginal revenue equals marginal cost
A competitive firm is currently producing a quantity of output which marginal revenue exceeds
marginal cost. In order to increase its profit, the firm should... - ANS ✔✔Increase its quantity of
output
A firm in a competitive market has the following cost structure: if the firms fixed cost of
production is $3, and the market price is $10, how many units should the firm produce to
maximize profit? - ANS ✔✔3 units
A firm will shut down in the short run if the total revenue that it would get from producing and
selling its output is less than its - ANS ✔✔Variable costs
Competitive markets are characterized by - ANS ✔✔Free entry and exit by firms
Mrs. Smith is operating a firm in a competitive market. The market price is $6.50. At her profit
maximizing level of output, her average total cost of production is $7, and her average variable
