Economics Chapter 12 Multiple Choice The Short run Supply Curve For

80. Multiple Choice: If a perfectly competitive firm is pr…

Question If a perfectly competitive firm is producing a quantity where MC < MR, then profit:

81. Multiple Choice: If a perfectly competitive firm is pr…

Question If a perfectly competitive firm is producing a quantity where MC = MR, then profit:

82. Multiple Choice: If a perfectly competitive firm is pr…

Question If a perfectly competitive firm is producing a quantity where P < MC, then profit:

83. Multiple Choice: If a perfectly competitive firm is pr…

Question If a perfectly competitive firm is producing a quantity where P > MC, then profit:

Points: 0

84. Multiple Choice: If a perfectly competitive firm is pr…

Question If a perfectly competitive firm is producing a quantity where P = MC, then profit:

85. Multiple Choice: Figure: Total Revenue and Total Cost ...

Question Figure: Total Revenue and Total Cost

Reference: Ref 12-1

(Figure: Total Revenue and Total Cost) Look at the figure Total Revenue and Total

Cost. The most profitable level of output occurs at quantity:

Points: 0

86. Multiple Choice: If the price is greater than average …

Question If the price is greater than average total cost at the profit–maximizing quantity of

output in the short run, a perfectly competitive firm will:

87. Multiple Choice: In the short run, a perfectly competi…

Question In the short run, a perfectly competitive firm produces output and earns an

economic profit if:

88. Multiple Choice: In the short run, a perfectly competi…

Question In the short run, a perfectly competitive firm produces output and earns zero

economic profit if:

89. Multiple Choice: Which of the following is true?

Question Which of the following is true?

Points: 0

90. Multiple Choice: A perfectly competitive firm will ear…

Question A perfectly competitive firm will earn a profit in the short run when it produces the

profit–maximizing quantity of output and the price is:

91. Multiple Choice: If the price is greater than average …

Question If the price is greater than average total cost at the profit–maximizing quantity of

output in the short run, a perfectly competitive firm will:

92. Multiple Choice: For a perfectly competitive firm in t...

Question For a perfectly competitive firm in the short run:

Points: 0

93. Multiple Choice: In the short run, a perfectly competi…

Question In the short run, a perfectly competitive firm produces output and breaks even if:

94. Multiple Choice: In the short run, if P = ATC, a perfe...

Question In the short run, if P = ATC, a perfectly competitive firm:

95. Multiple Choice: In the short run, if P > ATC, a pe…

Question In the short run, if P > ATC, a perfectly competitive firm:

96. Multiple Choice: In perfectly competitive markets, if ...

Question In perfectly competitive markets, if the price is ________, the firm will________.

Points: 0

97. Multiple Choice: A perfectly competitive firm will ear…

Question A perfectly competitive firm will earn a profit and will continue producing the profit-

maximizing quantity of output in the short run if the price is:

98. Multiple Choice: Consider a perfectly competitive firm...

Question Consider a perfectly competitive firm in the short run. Assume the firm produces

the profit-maximizing output and that it earns economic profits. At the profit–

maximizing output, all of the following are correct except:

99. Multiple Choice: Suppose a perfectly competitive firm …

Question Suppose a perfectly competitive firm can increase its profits by increasing its

output. Then it must be true that the firm’s:

100. Multiple Choice: A competitive firm operating in the s...

Question A competitive firm operating in the short run is producing at the output level at

which ATC is at a minimum. If ATC = $8 and MR = $9, in order to maximize profits

(or minimize losses), this firm should:

Points: 0

101. Multiple Choice: Zoe‘s Bakery operates in a perfectly ...

Question Zoe’s Bakery operates in a perfectly competitive industry. When the market price of

iced cupcakes is $5, the profit-maximizing output level is 150 cupcakes. Her

average total cost is $4, and her average variable cost is $3. Zoe‘s marginal cost is

________, and her short-run profits are:

102. Multiple Choice: A perfectly competitive firm is defin…

Question A perfectly competitive firm is definitely earning an economic profit when:

103. Multiple Choice: Mikail‘s perfectly competitive camera...

Question Mikail’s perfectly competitive camera memory card–producing factory is making

positive economic profits. If the price of memory cards is $9, Mikail‘s output is

3,000 cards a month, and his monthly average total cost is $7, what are his

monthly profits?

Points: 0

104. Multiple Choice: Suppose Sarah’s pottery studio is cha…

Question Suppose Sarah’s pottery studio is charging the market price, which is just higher

than her minimum average total cost. This means that Sarah:

105. Multiple Choice: The break-even price for a perfectly ...

Question The break-even price for a perfectly competitive firm is equal to:

106. Multiple Choice: Consider a perfectly competitive firm...

Question Consider a perfectly competitive firm in the short run. Assume that it is sustaining

economic losses but continues to produce. At the profit-maximizing (loss–

minimizing) output, all of the following statements are correct except:

107. Multiple Choice: Zoe‘s Bakery determines that P < A...

Question Zoe’s Bakery determines that P < ATC and P > AVC. Zoe should:

Points: 0

108. Multiple Choice: A perfectly competitive small organic…

Question A perfectly competitive small organic farm that produces 1,000 cauliflower heads in

the short run has an ATC = $6 and AFC = $2. The market price is $3 per head and

is equal to MC. In order to maximize profits (or minimize losses), this farm should:

109. Multiple Choice: If the price is consistently below av…

Question If the price is consistently below average total cost, then in the short run a perfectly

competitive firm should:

110. Multiple Choice: During the summer, Alex runs a lawn-m...

Question During the summer, Alex runs a lawn-mowing service, and lawn-mowing is a

perfectly competitive industry. In the short run, Alex will shut down his lawn-

mowing service rather than continue mowing grass if:

Points: 0

111. Multiple Choice: Many furniture stores run “goin…

Question Many furniture stores run “going out of business” sales but never go out of

business. In order for the shut-down decision to be the appropriate one, the price of

furniture must be ________ than the ________ average variable cost.

112. Multiple Choice: The short-run supply curve for a perf…

Question The short-run supply curve for a perfectly competitive firm has its:

113. Multiple Choice: The lowest point on a perfectly compe…

Question The lowest point on a perfectly competitive firm’s short-run supply curve

corresponds to the minimum point on the ________ curve.

114. Multiple Choice: If the price is consistently below th...

Question If the price is consistently below the average variable cost, then in the short run a

perfectly competitive firm should:

Points: 0

115. Multiple Choice: A perfectly competitive firm will inc...

Question A perfectly competitive firm will incur an economic loss but will continue to produce

the profit-maximizing quantity of output in the short run if the price is:

116. Multiple Choice: If the price is greater than the aver…

Question If the price is greater than the average variable cost and less than the average total

cost at the profit–maximizing quantity of output in the short run, a perfectly

competitive firm will:

117. Multiple Choice: The shut-down price is:

Question The shut-down price is:

Points: 0

118. Multiple Choice: For a perfectly competitive firm, the…

Question For a perfectly competitive firm, the short-run supply curve is the:

119. Multiple Choice: A perfectly competitive firm will con...

Question A perfectly competitive firm will continue producing in the short run as long as it

can cover its:

120. Multiple Choice: The short-run supply curve for a perf…

Question The short-run supply curve for a perfectly competitive firm is:

121. Multiple Choice: Which of the following is true?

Question Which of the following is true?

Points: 0

122. Multiple Choice: In perfect competition, the profit-ma…

Question In perfect competition, the profit-maximizing level of output occurs where the:

123. Multiple Choice: A perfectly competitive firm will inc...

Question A perfectly competitive firm will incur an economic loss but will continue producing

output in the short run if the price is:

124. Multiple Choice: If the price is greater than the aver…

Question If the price is greater than the average variable cost and less than the average total

cost at the profit–maximizing quantity of output in the short run, a perfectly

competitive firm will:

125. Multiple Choice: In the short run, if AVC < P < ...

Question In the short run, if AVC < P < ATC, a perfectly competitive firm:

Points: 0

126. Multiple Choice: In the short run, a perfectly competi…

Question In the short run, a perfectly competitive firm produces output and incurs an

economic loss if:

127. Multiple Choice: A perfectly competitive firm will not…

Question A perfectly competitive firm will not produce any output in the short run and will

shut down if the price is:

128. Multiple Choice: The shut-down point in the short run is:

Question The shut-down point in the short run is:

Points: 0

129. Multiple Choice: If the price is less than the average…

Question If the price is less than the average variable cost at the profit-maximizing quantity of

output in the short run, a perfectly competitive firm will:

130. Multiple Choice: Assume that in the short run a perfec…

Question Assume that in the short run a perfectly competitive firm does not produce output

and has economic losses. This would occur if:

131. Multiple Choice: In the short run, if P < AVC, a pe…

Question In the short run, if P < AVC, a perfectly competitive firm:

132. Multiple Choice: A firm‘s shut-down point is the minim…

Question A firm’s shut-down point is the minimum value of:

Points: 0

133. Multiple Choice: A perfectly competitive firm‘s short-…

Question A perfectly competitive firm’s short–run supply curve is its:

134. Multiple Choice: A perfectly competitive firm‘s margin…

Question A perfectly competitive firm’s marginal cost curve above the average variable cost

curve is its:

135. Multiple Choice: A competitive firm operating in the s...

Question A competitive firm operating in the short run is maximizing profits and just breaking

even. Its costs include a monthly license fee of $100 that is imposed by the state

and must be paid for as long as the firm is in existence. If the license fee is raised

to $150, what should the firm do to maximize profits in the short run?

136. Multiple Choice: Which of the following is true?

Points: 0

Question Which of the following is true?

137. Multiple Choice: Wenqin is a farmer, and in the short ...

Question Wenqin is a farmer, and in the short run she produces 100 bushels of wheat. Her

average total cost per bushel is $1.75, total revenue is $450, and (total) fixed costs

are equal to $100. Wenqin’s:

138. Multiple Choice: Figure: Prices, Cost Curves, and Prof...

Question Figure: Prices, Cost Curves, and Profits

Reference: Ref 12-2

(Figure: Prices, Cost Curves, and Profits) Look at the figure Prices, Cost Curves,

and Profits. If the price is P1 and the firm decides to produce at output Q1, then

the firm earns:

Points: 0

139. Multiple Choice: Figure: Prices, Cost Curves, and Prof...

Question Figure: Prices, Cost Curves, and Profits

Reference: Ref 12-2

(Figure: Prices, Cost Curves, and Profits) Look at the figure Prices, Cost Curves,

and Profits. If the price is P2 and the firm is profit maximizing, then the firm’s profit

is:

140. Multiple Choice: Figure: Cost Curves for Corn Producer…

Question

Points: 0

Figure: Cost Curves for Corn Producers

Reference: Ref 12-3

(Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn

Producers. The market for corn is perfectly competitive, and an individual corn

farmer faces the cost curves shown in the figure. If the price of a bushel of corn in

the market is $14, then the farmer will produce ________ of corn and earn an

economic ________ equal to _________.

141. Multiple Choice: Figure: Cost Curves for Corn Producer…

Question

Points: 0

Figure: Cost Curves for Corn Producers

Reference: Ref 12-3

(Figure: Cost Curves for Corn Producers) Look at the figure Cost Curves for Corn

Producers. The market for corn is perfectly competitive, and an individual corn

farmer faces the cost curves shown in the figure. If the price of a bushel of corn in

the market is $4, then the farmer will produce ________ of corn and earn an

economic ________ equal to ________.

Answer 0 bushels; loss; average fixed costs

142. Multiple Choice: Figure: Cost Curves for Corn Producer…

Question

Points: 0