Key Concept Quiz standardized product a. a guide for a firm realizing losses in the short run taker _____ b. increase in total revenue from the sale of another unit of output marginal revenue _____ c. when buyers and sellers are fully aware of market marginal cost opportunities profit maximization _____ d. when MR = MC shut-down rule _____ e. implies irrelevance of brand loyalty perfect competition _____ f. new firms cannot enter the market monopoly _____ g. increase in total cost that results from the barriers to entry production of another unit of output natural monopoly h. a market structure characterized by a single supplier privatization _____ i. change in ownership to allow a company to perfect information operate on a for-profit basis j. characteristic of a perfectly competitive firm _____ k. when a firm can supply the entire market at a lower unit cost than would be achieved by two or more firms _____ l. the most competitive market structure Multiple Choice Questions The soft-drink market is NOT a perfectly competitive market because new firms cannot enter this market are very few buyers in this market there are only two sellers in this market the product sold is not homogeneous A competitive firm sells at a price that is decided by the federal government the firm the buyers of the product interaction of all the suppliers and consumers of the product The demand curve for a competitive firm is drawn as a horizontal line price line determined by the market all of the above
Key Concept Quiz standardized product taker marginal revenue marginal cost profit maximization shut-down rule perfect competition monopoly barriers to entry natural monopoly privatization perfect information a. a guide for a firm realizing losses in the short run _____ b. increase in total revenue from the sale of another unit of output _____ c. when buyers and sellers are fully aware of market opportunities _____ d. when MR = MC _____ e. implies irrelevance of brand loyalty _____ f. new firms cannot enter the market _____ g. increase in total cost that results from the production of another unit of output h. a market structure characterized by a single supplier _____ i. change in ownership to allow a company to operate on a for-profit basis j. characteristic of a perfectly competitive firm _____ k. when a firm can supply the entire market at a lower unit cost than would be achieved by two or more firms _____ l. the most competitive market structure Multiple Choice Questions The soft-drink market is NOT a perfectly competitive market because new firms cannot enter this market are very few buyers in this market there are only two sellers in this market the product sold is not homogeneous A competitive firm sells at a price that is decided by the federal government the firm the buyers of the product interaction of all the suppliers and consumers of the product The demand curve for a competitive firm is drawn as a horizontal line price line determined by the market all of the above
Chapter-5.docx