Microeconomics Quiz Review
1. All firms, no matter what type of firm structure they are producing in, make their production decisions based on where: marginal revenue equals marginal costs.
2. According to the table below, when profits are maximized, profits are equal to: $2.
3. Many economists believe that the market for wheat in the United States is an almost perfectly competitive market. If one firm discovers a technology that makes their wheat taste better and have fewer calories than all other wheat offered in the market, the wheat market would become less competitive because: the products would no longer be similar in the wheat market.
4. When talking about economics profits in a perfectly competitive market, the difference between the …show more content…
34. A firm’s willingness to supply their product in the long run is represented on a graph by: the part of the marginal cost (MC) curve above minimum average total cost (ATC).
35. It’s easy to determine if a firm is making long-run production decisions by looking at its cost structurE. This is because in the long run, a firm does not have any: fixed costs.
36. If Nicole’s Knick-Knacks is a perfectly competitive firm and is making zero economic profits, Nicole’s Knick-Knacks will stay in the market.
37. If Firm A is making zero economic profits, Firm A is breaking even when opportunity cost is taken into consideration. Chapter 10
1. One argument against patent and copyright laws is that they: limit exposure that can benefit companies and individuals.
2. In instances when having a single firm in the market makes sense, governments ___________ to minimize negative externalities. require licenses.
3. The following table represents the costs of production and market demand faced by a monopolist. As production increases, the price consumers are willing to pay for the good: decreases.
4. At high price levels, demand tends to be ____________ and the price effect is ________, relative to the output effect. elastic; small