Eco 561 Week 3 Quiz
ECO561 Week 3 …FREE…Quiz with Answers…
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Roguephoenix FaceB**K
PLEASE COMMENT TO LET ME KNOW THAT THIS IS HELPING MY FELLOW PHOENIX. 1. A purely- or perfectly-competitive firm would be characterized by which of the following?
Hint : The different types of firms include pure competition, pure monopoly, monopolistic competition, and oligopoly. A. Large number of firms, price taker, free entry and exit, and standardized product B. Large number of firms, price maker, free entry and exit, and a differentiated product C. Small number of firms, price maker, limited entry and exit, and a standardized product D. One firm, price maker, limited entry and exit, and a unique product
2. For a purely-competitive firm, price must be
Hint : In a purely competitive firm the revenue received for the first unit is the same as that of the last unit sold, which is the same as that which will be received for the next unit sold. A. equal to marginal revenue and average revenue B. greater than marginal revenue and average revenue C. greater than marginal revenue, and equal to average revenue D. less than both marginal revenue and average revenue
In the case of a purely competitive firm, as opposed to other market structures, a producer can provide as much as they want at the market price, so producers don't need to change the price for the product to sell additional units. In other words, the revenue received for the first unit is the same as that of the last unit sold, which is the same as the revenue for the next unit sold (marginal revenue). In addition, because the revenue received from each unit sold is the same—that is it doesn't change with additional sales—the average revenue is equal to the price, which is equal to the marginal revenue.
3. What will excessive or economic profits induce for a firm in any industry structure?
Hint : Instead of thinking of all
** I see a lot of views , but no comments : (
Roguephoenix FaceB**K
PLEASE COMMENT TO LET ME KNOW THAT THIS IS HELPING MY FELLOW PHOENIX. 1. A purely- or perfectly-competitive firm would be characterized by which of the following?
Hint : The different types of firms include pure competition, pure monopoly, monopolistic competition, and oligopoly. A. Large number of firms, price taker, free entry and exit, and standardized product B. Large number of firms, price maker, free entry and exit, and a differentiated product C. Small number of firms, price maker, limited entry and exit, and a standardized product D. One firm, price maker, limited entry and exit, and a unique product
2. For a purely-competitive firm, price must be
Hint : In a purely competitive firm the revenue received for the first unit is the same as that of the last unit sold, which is the same as that which will be received for the next unit sold. A. equal to marginal revenue and average revenue B. greater than marginal revenue and average revenue C. greater than marginal revenue, and equal to average revenue D. less than both marginal revenue and average revenue
In the case of a purely competitive firm, as opposed to other market structures, a producer can provide as much as they want at the market price, so producers don't need to change the price for the product to sell additional units. In other words, the revenue received for the first unit is the same as that of the last unit sold, which is the same as the revenue for the next unit sold (marginal revenue). In addition, because the revenue received from each unit sold is the same—that is it doesn't change with additional sales—the average revenue is equal to the price, which is equal to the marginal revenue.
3. What will excessive or economic profits induce for a firm in any industry structure?
Hint : Instead of thinking of all