1.A consumer strives for maximisation of _______, a producer works for maximisation of ______
a. profit, money
b. status, profit
c. wealth, income
d. satisfaction, profit
2.Zero economic profits means
a. a firm will go out of business in the long run.
b. the firm needs to lower price.
c. the firm needs to increase its advertising expenditures.
d. the firm is covering all of its opportunity costs and will stay in Business
3.Which of the following does not equal the total revenue of a perfectly competitive firm in long-run equilibrium?
a.AR*Q
b.MC*Q
c.MR*P
d.ATC*Q
4.For a perfectly competitive firm, price
a.equals both average revenue and marginal revenue
b.equals both average revenue and marginal revenue.
c.equals marginal revenue only.
d.equals average revenue only.
5.How is the short run supply curve for a perfectly competitive firm determined?
a.Prices above the minimum of the marginal cost curve means that firms are earning positive profits so the short run supply curve is the average total cost curve above that point
b.Prices above the short run shutdown price mean that firms are earning a higher profit than if they produced zero units so the short run supply curve is the marginal cost curve above that point.
c.The short run supply curve will depend upon whether it is a constant cost, increasing cost or decreasing cost industry.
d.Prices above the minimum of the average total cost curve means that firms are earning positive profits so the short run supply curve is the marginal cost curve above that point.
6.The perfectly competitive firm in long-run equilibrium produces a level of output such that:
a.P = MC = MR = Short-run AR = long-run ATC
b.there is entry of new firms into the industry
c.P exceeds ATC by the greatest amount
d.AFC + AVC = ATC.
7.Perfect competition is ----------------- observed in real world.
a.arely
b.often
c.mostly
d.usually
8.One of the requirements for …………………….. is that the products of competing firms should be ………………...
a.perfect competition, perfect substitutes
b.monopoly, perfect substitutes
c.monopolistic competition, perfect substitutes
d.perfect competition, imperfect substitutes
9.Product differentiation occurs when:
a.A completely new process is used to produce a familiar product
b.Different prices are charged for the same good in different market
c.A firm produces many different goods
d.Buyers, though not necessarily sellers, perceive differences in the products of several companies
Answers
Answered by
2
Explanation:
consumer strives for maximisation of _______, a producer works for maximisation of ______
Answered by
0
Answer :
1. d. satisfaction, profit
2. d. the firm is covering all of its opportunity costs and will stay in Business
3. d. ATC*Q
4. d. equals average revenue only.
5. b. Prices above the short run shutdown price mean that firms are earning a higher profit than if they produced zero units so the short run supply curve is the marginal cost curve above that point.
6. a. P = MC = MR = Short-run AR = long-run ATC
7. a. rarely
8.a. perfect competition, perfect substitutes
9. d. Buyers, though not necessarily sellers, perceive differences in the products of several companies.
Explanation :
- 1. A consumer strives for maximization of satisfaction, while a producer works for maximization of profit. This means that a consumer will choose to purchase goods or services that they believe will give them the most satisfaction, while a producer will try to make the most profit by selling goods or services at the highest price they can.
- 2. Zero economic profits means that a firm is only covering its opportunity costs and will stay in business. This means that the firm is not making any extra profit above what it could make by investing in an alternative opportunity.
- 3. The total revenue of a perfectly competitive firm in long-run equilibrium does not equal ATCQ. This is because in long-run equilibrium, a firm will be producing at the point where P=MC, so their total revenue will be equal to PQ, not ATC*Q.
- 4. For a perfectly competitive firm, price equals average revenue only. This is because in a perfectly competitive market, firms are price takers, meaning they have to accept the market price, so their average revenue will be equal to the market price. However, their marginal revenue will be less than the market price because as they increase production, they will have to lower the price to sell the additional units.
- 5. The short run supply curve for a perfectly competitive firm is determined by prices above the short run shutdown price. This means that if the market price is above the firm's short run shutdown price, they will be earning a higher profit than if they produced zero units, so they will produce more and the short run supply curve is the marginal cost curve above that point.
- 6. The perfectly competitive firm in long-run equilibrium produces a level of output such that P = MC = MR = Short-run AR = long-run ATC. This means that the firm is producing at the point where the market price is equal to the firm's marginal and average costs, and their marginal and average revenues.
- 7. Perfect competition is rarely observed in the real world. This is because it is difficult to find markets where there are a large number of small firms, perfect information, and homogeneous products.
- 8. One of the requirements for perfect competition is that the products of competing firms should be perfect substitutes. This means that the products offered by different firms are identical, and consumers are indifferent between them.
- 9. Product differentiation occurs when buyers perceive differences in the products of several companies. This means that consumers view the products of different firms as being different in some way, whether it be in terms of quality, design, or some other attribute. As a result, consumers will be willing to pay different prices for the products, and firms can charge different prices for their products.
To know more about the concept please go through the links :
https://brainly.in/question/48933758
https://brainly.in/question/34907061
#SPJ3
Similar questions