ECON102 Study Guide - Quiz Guide: Average Variable Cost, Marginal Revenue, Perfect Competition

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coralhyena595

3 Mar 2015

School

University of Waterloo

Department

Economics

Course

ECON102

Professor

Wokia Kumase

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ECON102 Full Course Notes

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Use the figure below to answer the following questions: refer to figure 12. 1. 1. The firm competes in a perfectly competitive market. Figure 12. 1. 1 the firm"s: average variable cost curve, total fixed cost curve, marginal revenue curve, average fixed cost curve, total revenue curve. Table 12. 1. 1: refer to table 12. 1. 1 which gives the demand schedule for a perfectly competitive firm. If the firm sells 6 units of output, marginal revenue is: , , , , , lin fortune cookies are identical to fortune cookies made by other firms. There is free entry in the cookie market. Buyers and sellers are well informed about prices. The price of a fortune cookie is determined by _____. The marginal revenue of a fortune cookie equals _____. (see next page for options) Table 12. 2. 1: refer to table 12. 2. 1, which gives the total revenue schedule and total cost schedule of a perfectly competitive firm.

Related Questions

8 In a perfectly competitive market, the market demand curve is a(n) A) downward-sloping curve. B) line that is vertical at the market output. C) upward-sloping curve. D) line that is horizontal at the market price. E) curve that is bowed towards the origin

30. Economies of scale refer to:

a. the minimum point on the short-run average total cost curve.

b. the flat portion of the long-run average total cost curve.

c. a decrease in the long-run average total cost of production as output increases.

d. a and b.

31. With a natural monopoly, the price a single firm must charge to make a profit:

a. is lower than the price two or more firms would have to charge.

b. is always higher than the price two or more firms would have to charge.

c. is equal to the price of two or more firms would have to charge.

d. is half the price two or more firms would have to charge.

32. The long-run average cost curve is typically:

a. downward-sloping at first but then upward-sloping.

b. upward-sloping at first but then downward-sloping.

c. always downward-sloping.

d. always upward-sloping.

33. According to the contestable market model, if there are no barriers to entry or exit, the price an oligopolist sets will be equivalent to the competitive price.
True or False?

34. In the theory of perfect competition:

a. the market demand curve is horizontal (i.e. elastic).

b. the single firm's demand curve is horizontal (i.e. elastic).

c. the single firm's demand curve is downward sloping.

d. a and b.

amethystraven1

In the price range above minimum average variable cost, a perfectly competitive firm's supply curve is

Select one:

A. horizontal at the market price.

B. the same as its total variable cost curve.

C. vertical at zero output.

D. the same as its average variable cost curve.

E. the same as its marginal cost curve.

salmonkoala400

ECON102 Study Guide - Quiz Guide: Average Variable Cost, Marginal Revenue, Perfect Competition

ECON102 Full Course Notes

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