exam 3 econ 101 caldwell
Questions and Answers 100%
Pass
profit maximization assumption - CORRECT ANSWER-we assume that firms
attempt to maximize profits
profits= - CORRECT ANSWER-TR-TC
P*Q-C(Q)
total revenue - CORRECT ANSWER-the amount of income received from all
units sold
total cost - CORRECT ANSWER-the total amount spent producing a given
quantity of output
marginal cost - CORRECT ANSWER-the additional cost incurred by producing
an additional unit of output
MC= - CORRECT ANSWER-ΔTC/ΔQ
MR= - CORRECT ANSWER-ΔTR/ΔQ
, marginal revenue - CORRECT ANSWER-the change in total revenue generated
by selling an additional unit of output
profit maximizing condition under perfect competition - CORRECT ANSWER-
firms should KEEP producing if MR>MC, and STOP producing where MR=MC
(same as monopoly)
perfectly competitive firm profitability - CORRECT ANSWER-firm is profitable if
TR>TC
firm breaks even if TR=TC
firm incurs a loss if TR<TC
perfect competition - CORRECT ANSWER-a market structure in which a large
number of firms all produce the same product and are each price takers
price taker - CORRECT ANSWER-a buyer or seller that is unable to affect the
market price; faces horizontal, perfectly elastic demand curve
perfectly competitive market - CORRECT ANSWER-a market in which all market
participants are price takers
perfectively competitive industry - CORRECT ANSWER-an industry in which all
producers are price takers
conditions for perfect competition - CORRECT ANSWER-1) many producers
with small market shares
2) consumers regard all products as equivalent
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
Questions and Answers 100%
Pass
profit maximization assumption - CORRECT ANSWER-we assume that firms
attempt to maximize profits
profits= - CORRECT ANSWER-TR-TC
P*Q-C(Q)
total revenue - CORRECT ANSWER-the amount of income received from all
units sold
total cost - CORRECT ANSWER-the total amount spent producing a given
quantity of output
marginal cost - CORRECT ANSWER-the additional cost incurred by producing
an additional unit of output
MC= - CORRECT ANSWER-ΔTC/ΔQ
MR= - CORRECT ANSWER-ΔTR/ΔQ
, marginal revenue - CORRECT ANSWER-the change in total revenue generated
by selling an additional unit of output
profit maximizing condition under perfect competition - CORRECT ANSWER-
firms should KEEP producing if MR>MC, and STOP producing where MR=MC
(same as monopoly)
perfectly competitive firm profitability - CORRECT ANSWER-firm is profitable if
TR>TC
firm breaks even if TR=TC
firm incurs a loss if TR<TC
perfect competition - CORRECT ANSWER-a market structure in which a large
number of firms all produce the same product and are each price takers
price taker - CORRECT ANSWER-a buyer or seller that is unable to affect the
market price; faces horizontal, perfectly elastic demand curve
perfectly competitive market - CORRECT ANSWER-a market in which all market
participants are price takers
perfectively competitive industry - CORRECT ANSWER-an industry in which all
producers are price takers
conditions for perfect competition - CORRECT ANSWER-1) many producers
with small market shares
2) consumers regard all products as equivalent
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
