Economics Ch 5 & 8

Topics: Marginal cost, Economics, Perfect competition Pages: 7 (779 words) Published: October 1, 2014
A perfectly competitive firm is a:
Correct Answer :
price taker

The Choices Were:
loss leader
price leader
price taker
price maker
________________________________________
Correct Answer
A firm that has monopoly power is a:

Your Answer : price maker
Correct Answer : price maker
The Choices Were:
loss leader
price leader
price taker
price maker
________________________________________
Correct Answer
For a perfectly competitive firm, price is always identical to
Your Answer : marginal revenue
Correct Answer : marginal revenue
The Choices Were:
marginal cost
marginal revenue
total revenue
average total cost
________________________________________
Correct Answer
Perfect competition is not characterized by

Your Answer : sizable barriers preventing new firms from entering the market Correct Answer : sizable barriers preventing new firms from entering the market The Choices Were:
sizable barriers preventing new firms from entering the market •a large number of sellers and buyers in the market
all sellers and buyers being fully aware of market opportunities •firms producing a standardized product
________________________________________
Correct Answer
Private goods are not subject to the principle of rival consumption. True / False | 2.00pts

Your Answer : False
Correct Answer : False
The Choices Were:
True
False
________________________________________
Correct Answer
The government may step in to ensure that buyers and sellers have reliable information. True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
Public goods are not subject to the exclusion principle.
True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
A spillover effect is a cost or benefit imposed on someone other than the actual consumers. True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
To help correct for the problem of economic inequality in a market economy, the government provides transfer payment programs for people in need such as unemployment compensation and food stamps. True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
Among the business practices outlawed by the Clayton Act are interlocking directorates, price discrimination, and tying contracts that substantially lessen competition. True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
Antitrust policy is an attempt to promote a market environment that results in increased competition and a reduction in anti-competitive behavior that harms consumers. True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
Because a perfectly competitive firm supplies a very small share of the market output, it has to take or accept the price that is determined in the market. True / False | 2.00pts

Your Answer : True
Correct Answer : True
The Choices Were:
True
False
________________________________________
Correct Answer
DeBeers, a producer of diamonds, is an example of a perfectly competitive firm. True / False | 2.00pts

Your Answer : True
Correct Answer : False
The Choices Were:
True
False
________________________________________
Incorrect Answer*
A monopoly is a market structure characterized by a single supplier of a good or service for which there are many substitutes. True / False |...
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