Price Lowering in Perfect Competition

Which of the following would occur if a single farm in a perfect competition lowered its price below the long-run equilibrium market price? A) all other farms would lower prices too B) it would not be maximizing profit C) It would get a larger share of the market, and this would be profitable for it. D) Other farms would b ...continues

28- What eliminates perfect competition in a market?

Which of the following eliminates the possibility of perfect competition in a market? a) the industry faces a downward sloping demand curve b) individual firms face downward sloping demand curves c) firms face decreasing returns to scale d) firms display constant returns to scale E) the market lacks product differentiation ...continues

Marginal Revenue - Marginal Cost

If a firm finds out that its MR is greater than its MC, it should: a) increase production and sales B0 decrease production and sales c) encourage the entry of other firms into the market d) keep raising its selling price until MR =MC. E) change nothing because profits are maximized.

31- Monopolist behavior

If a viable monopolist must pay a new franchise tax ( a flat sum to operate), he will unless profits fall below zero: a) increase output. b) decrease output. c) lower price. d) make no change in price or quantity, but earn less profits e) raise price to keep profits at the same level.

If a firm finds that its MR exceeds its MC, then the Maximum Profit rules require the firm to:

If a firm finds that its MR exceeds its MC, then the Maximum Profit rules require the firm to: a) increase its output in perfect, but not necessarily imperfect competition b) increase its output in imperfect, but not necessarily in perfect competition. c) increse its output in both perfect and imperfect competition d ...continues

45 - Firm Collusion for Profit sharing

Suppose that two firms, A and B, collude to share maximum profits. If the average cost curve for Firm A is higher than the average cost curve for firm B at every output, then a) firm A should produce nothing. b) firm A should produce output as long as its marginal cost is less than Firm B's c) both firms should produce wh ...continues

63 - Marginal Revenue Product & Input

The MRP of an input is: a) the selling price of the last unit of OUTPUT b) the increment of total revenue resulting from the use of an additional unit of input. c) used in determining marginal product d) harder to determine in pure competition than in monopoly e) harder to determine in pure competition than in oli ...continues

A perfectly competitive firm should hire an additional worker only if:

A perfectly competitive firm should hire an additional worker only if: a) total revenue is less than total cost. b) the worker's marginal revenue product is less than the wage rate. c) the worker's marginal product falls. d) the worker's marginal product rises. e) the worker's marginal revenue product exceeds the wage rat ...continues

65 - Income - Marginal Productivity

Since income depends on the price of the productive services a person has to sell multiplied by the quantity of those services sold a) an increase in the Marginal Productivity of a service can increase income by making the service more desirable. b) a decrease in the marginal productivity of a service can increase income b ...continues

67 - Input

the amount of a given input demanded by firm depends on the a) price of the finished good b) prices of all other inputs c) price of the input d) state of technology e) all of the above