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 __
ms ms ms ms ms ms ms ms ms ms ms
___________.
ANSWER
marginal revenue = marginal cost
ms ms ms ms
QUESTION 2 ms
A purely competitive firm is currently producing and selling 2,000 units per month at
ms ms ms ms ms ms ms ms ms ms ms ms ms ms
the market price/ marginal revenue of $5.60. Its marginal cost for the next unit is $5.
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
The firm should: - shut down - increase production - or is maximizing profits?
ms ms ms ms ms ms ms ms ms ms ms ms ms
ANSWER
increase production ms
QUESTION 3 ms
Are individual firms in purely competitive markets: - price takers - or price makers?
ms ms ms ms ms ms ms ms ms ms ms ms ms
ANSWER
price takers ms
QUESTION 4 ms
The market for which of the following most closely approximates pure competition? -
ms ms ms ms ms ms ms ms ms ms ms ms
feed corn - breakfast cereal - computers
ms ms ms ms ms ms ms
ANSWER
feed corn ms
, QUESTION 5 ms
Compared to a purely competitive firm, a monopolistically competitive firm faces mor
ms ms ms ms ms ms ms ms ms ms ms
e/less elastic demand curve.
ms ms ms
ANSWER
less
QUESTION 6 ms
If three airlines service a particular route and one signals its price intentions through
ms ms ms ms ms ms ms ms ms ms ms ms ms m
a weekly posting on its internet site and the other two quickly match, what is this cal
s ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
led?
ANSWER
price leadership
ms
QUESTION 7 ms
Suppose several firms in a purely competitive industry begin to tinker with their prod
ms ms ms ms ms ms ms ms ms ms ms ms ms
uct designs. Because of the product differentiation, they are able to slightly increase t
ms ms ms ms ms ms ms ms ms ms ms ms ms
heir prices. The industry has now moved from a purely competitive industry to a _____
ms ms ms ms ms ms ms ms ms ms ms ms ms ms
________________.
ANSWER
monopolistic competition ms
QUESTION 8 ms
Antitrust authorities are unlikely to take action against conglomerate mergers becaus
ms ms ms ms ms ms ms ms ms ms
e they are likely/unlikely to create monopoly power.
ms ms ms ms ms ms ms
ANSWER
unlikely
QUESTION 9 ms
What type of merger would it be if a restaurant chain were to merge with a firm that
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
makes paper and plastic wrappings for the chain's entrees?
ms ms ms ms ms ms ms ms
ANSWER
vertical
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 __
ms ms ms ms ms ms ms ms ms ms ms
___________.
ANSWER
marginal revenue = marginal cost
ms ms ms ms
QUESTION 2 ms
A purely competitive firm is currently producing and selling 2,000 units per month at
ms ms ms ms ms ms ms ms ms ms ms ms ms ms
the market price/ marginal revenue of $5.60. Its marginal cost for the next unit is $5.
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
The firm should: - shut down - increase production - or is maximizing profits?
ms ms ms ms ms ms ms ms ms ms ms ms ms
ANSWER
increase production ms
QUESTION 3 ms
Are individual firms in purely competitive markets: - price takers - or price makers?
ms ms ms ms ms ms ms ms ms ms ms ms ms
ANSWER
price takers ms
QUESTION 4 ms
The market for which of the following most closely approximates pure competition? -
ms ms ms ms ms ms ms ms ms ms ms ms
feed corn - breakfast cereal - computers
ms ms ms ms ms ms ms
ANSWER
feed corn ms
, QUESTION 5 ms
Compared to a purely competitive firm, a monopolistically competitive firm faces mor
ms ms ms ms ms ms ms ms ms ms ms
e/less elastic demand curve.
ms ms ms
ANSWER
less
QUESTION 6 ms
If three airlines service a particular route and one signals its price intentions through
ms ms ms ms ms ms ms ms ms ms ms ms ms m
a weekly posting on its internet site and the other two quickly match, what is this cal
s ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
led?
ANSWER
price leadership
ms
QUESTION 7 ms
Suppose several firms in a purely competitive industry begin to tinker with their prod
ms ms ms ms ms ms ms ms ms ms ms ms ms
uct designs. Because of the product differentiation, they are able to slightly increase t
ms ms ms ms ms ms ms ms ms ms ms ms ms
heir prices. The industry has now moved from a purely competitive industry to a _____
ms ms ms ms ms ms ms ms ms ms ms ms ms ms
________________.
ANSWER
monopolistic competition ms
QUESTION 8 ms
Antitrust authorities are unlikely to take action against conglomerate mergers becaus
ms ms ms ms ms ms ms ms ms ms
e they are likely/unlikely to create monopoly power.
ms ms ms ms ms ms ms
ANSWER
unlikely
QUESTION 9 ms
What type of merger would it be if a restaurant chain were to merge with a firm that
ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms ms
makes paper and plastic wrappings for the chain's entrees?
ms ms ms ms ms ms ms ms
ANSWER
vertical
