Economics Ch 5 & 8

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