SAYLOR ACADEMY 2025
ECON101: DIRECT CREDIT
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
If a producer sells its product in a perfectly competitive market, then: -
ANSWERS--TRY the total cost must be a constant multiple of its quantity of
output.
-NOT the total revenue must be equal to its average revenue.
QUESTION 2
In a perfectly competitive market, no single producer can influence the market
price because: - ANSWERS-many other producers are offering an identical
product.
QUESTION 3
A firm has the demand curve, the average cost curve (AC), the marginal cost curve
(MC), and the marginal revenue curve (MR) represented in the figure below. How
does the firm know what amount to produce to maximize its profit?
IMAGE - ANSWERS-It will produce at MR equals MC.
END OF
PAGE 1
, SAYLOR ACADEMY 2025
ECON101: DIRECT CREDIT
QUESTION 4
According to the figure below, what are the long term continuing prospects for this
particular market? - ANSWERS--TRY There will be fewer producers because less
cost-effective producers will exit the market.
-NOT There will be more producers because more efficient producers will enter
the market.
QUESTION 5
In this market, the selling price faced by each firm is $10.00. According to the
figure below, what is the economic profit earned by each firm?
IMAGE - ANSWERS-$1,200
QUESTION 6
For a perfectly competitive market, the oppositional processes of entry and exit
will end when: - ANSWERS-economic profits are zero.
END OF
PAGE 2
, SAYLOR ACADEMY 2025
ECON101: DIRECT CREDIT
QUESTION 7
In this market, the selling price faced by each firm is $3.50. According to the
figure below, what is the economic profit earned by each firm?
IMAGE - ANSWERS-$0
QUESTION 8
There are four curves represented in the diagram below: the demand curve, the
average cost curve (AC), the marginal cost curve (MC), and the marginal revenue
curve (MR). According to the figure, when producing 400 units, what is the firm's
profit? Is it a point of profit maximization?
IMAGE - ANSWERS-$2000; yes, this is a maximized profit
QUESTION 9
In a perfectly competitive market which is at long-run equilibrium, unexpected
economic profit will: - ANSWERS-Create additional entrants into the market.
END OF
PAGE 3
ECON101: DIRECT CREDIT
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
If a producer sells its product in a perfectly competitive market, then: -
ANSWERS--TRY the total cost must be a constant multiple of its quantity of
output.
-NOT the total revenue must be equal to its average revenue.
QUESTION 2
In a perfectly competitive market, no single producer can influence the market
price because: - ANSWERS-many other producers are offering an identical
product.
QUESTION 3
A firm has the demand curve, the average cost curve (AC), the marginal cost curve
(MC), and the marginal revenue curve (MR) represented in the figure below. How
does the firm know what amount to produce to maximize its profit?
IMAGE - ANSWERS-It will produce at MR equals MC.
END OF
PAGE 1
, SAYLOR ACADEMY 2025
ECON101: DIRECT CREDIT
QUESTION 4
According to the figure below, what are the long term continuing prospects for this
particular market? - ANSWERS--TRY There will be fewer producers because less
cost-effective producers will exit the market.
-NOT There will be more producers because more efficient producers will enter
the market.
QUESTION 5
In this market, the selling price faced by each firm is $10.00. According to the
figure below, what is the economic profit earned by each firm?
IMAGE - ANSWERS-$1,200
QUESTION 6
For a perfectly competitive market, the oppositional processes of entry and exit
will end when: - ANSWERS-economic profits are zero.
END OF
PAGE 2
, SAYLOR ACADEMY 2025
ECON101: DIRECT CREDIT
QUESTION 7
In this market, the selling price faced by each firm is $3.50. According to the
figure below, what is the economic profit earned by each firm?
IMAGE - ANSWERS-$0
QUESTION 8
There are four curves represented in the diagram below: the demand curve, the
average cost curve (AC), the marginal cost curve (MC), and the marginal revenue
curve (MR). According to the figure, when producing 400 units, what is the firm's
profit? Is it a point of profit maximization?
IMAGE - ANSWERS-$2000; yes, this is a maximized profit
QUESTION 9
In a perfectly competitive market which is at long-run equilibrium, unexpected
economic profit will: - ANSWERS-Create additional entrants into the market.
END OF
PAGE 3
