Eco Quiz 5 Ans

1. Incorrect.
You answered: c. Perfect competition.
Which of the following is not a type of market structure?
The correct answer was: a. Competitive monopoly.
2. Incorrect. You did not provide an answer.
If the market demand curve for a commodity has a negative slope then the market
structure must be
The correct answer was: d. The market structure cannot be determined from the
information given..
If a firm sells its output on a market that is characterized by many sellers and buyers, a
homogeneous product, unlimited long-run resource mobility, and perfect knowledge, then
the firm is a
The correct answer was: c. a perfect competitor..
If a firm sells its output on a market that is characterized by a single seller and many
buyers of a homogeneous product for which there are no close substitutes and barriers to
long-run resource mobility, then the firm is
The correct answer was: a. a monopolist..
If a firm sells its output on a market that is characterized by many sellers and buyers, a
differentiated product, and unlimited long-run resource mobility, then the firm is
The correct answer was: d. a monopolistic competitor..
If a firm sells its output on a market that is characterized by few sellers and many buyers
and limited long-run resource mobility, then the firm is
The correct answer was: b. an oligopolist..
If one perfectly competitive firm increases its level of output, market supply
The correct answer was: c. and market price will both remain constant..

Which of the following markets comes close to satisfying the assumptions of a perfectly
competitive market structure?
The correct answer was: d. All of the above come close to satisfying the assumptions of
perfect competition..
A perfectly competitive firm should reduce output or shut down in the short run if market
price is equal to marginal cost and price is
The correct answer was: d. less than average variable cost..
The market demand curve for a perfectly competitive industry is QD = 12 - 2P. The
market supply curve is QS = 3 + P. The market will be in equilibrium if
The correct answer was: d. P = 3 and Q = 6..
Which of the following is a barrier to entry that typically results in monopoly?
The correct answer was: c. Production of the industry's product requires a large initial
capital investment..
In the short run, a monopolist will shut down if it is producing a level of output where
marginal revenue is equal to short-run marginal cost and price is
The correct answer was: d. less than average variable cost..
A natural monopolyrefers to a monopoly that is defended from direct competition by
The correct answer was: a. economies of scale over a broad range of output..
When a perfectly competitive industry is in long-run equilibrium, all firms in the industry
The correct answer was: d. All of the above are correct..
The short-run supply curve of a perfectly competitive firm

The correct answer was: a. is equal to that portion of the short-run marginal cost curve
that is above the average variable cost curve..
The long-run supply curve of a perfectly competitive firm
The correct answer was: b. is equal to that portion of the long-run marginal cost curve
that is above the relevant short-run average total cost curve..
A depreciation of the U.S. dollar relative to foreign currencies will make
The correct answer was: b. U.S. exports less expensive in foreign countries..
The value of the U.S. dollar on the foreign exchange market will tend to
A monopolized market is in long-run equilibrium when
The correct answer was: c. production takes place where long-run marginal cost is equal
to marginal revenue and price is not below long-run average cost..
A monopolist produces 14,000 units of output and charges $14 per unit. Its marginal
revenue is $8, its marginal cost is $7 and rising, its average total cost is $10, and its
average variable cost is $9. The monopolist should
The correct answer was: a. increase output, which will result in an increase in the firm's
positive economic profit..
Which of the following types of firms is likely to be a monopolistic competitor?
The correct answer was: c. A restaurant..
Which of the following is a differentiated product?
The correct answer was: d. All of the above are differentiated products..

Which of the following is a characteristic of monopolistic competition?
The correct answer was: a. Few sellers..
The demand curve faced by a monopolistically competitive firm is
The correct answer was: b. elastic..
If an imperfectly competitive firm is producing a level of output where marginal cost is

equal to marginal revenue, marginal revenue is below average variable cost, and price is
equal to average total cost, then the firm
The correct answer was: d. None of the above is correct..
If an imperfectly competitive firm is producing a level of output where marginal cost is

equal to marginal revenue, marginal revenue is below average variable cost, and price is
equal to average total cost, then the firm is
The correct answer was: c. minimizing short-run average total cost..
Product variation refers to
The correct answer was: a. an activity undertaken by a firm to increase demand..
Which of the following is a criticism of the theory of monopolistic competition?
Which of the following industries is most likely to be monopolistically competitive?
The correct answer was: c. The car repair industry.
Marginal revenue is equal to price for which one of the following types of market
structure?
The correct answer was: b. Perfect competition.

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1. Incorrect.

You answered: c. Perfect competition.

Which of the following is not a type of market structure?

The correct answer was: a. Competitive monopoly.

2. Incorrect. You did not provide an answer.

3. Incorrect. You did not provide an answer.

The correct answer was: c. a perfect competitor..

4. Incorrect. You did not provide an answer.

The correct answer was: a. a monopolist..

5. Incorrect. You did not provide an answer.

The correct answer was: d. a monopolistic competitor..

6. Incorrect. You did not provide an answer.

The correct answer was: b. an oligopolist..

7. Incorrect. You did not provide an answer.

8. Incorrect. You did not provide an answer.

9. Incorrect. You did not provide an answer.

The correct answer was: d. less than average variable cost..

10. Incorrect. You did not provide an answer.

The correct answer was: d. P = 3 and Q = 6..

11. Incorrect. You did not provide an answer.

Which of the following is a barrier to entry that typically results in monopoly?

12. Incorrect. You did not provide an answer.

The correct answer was: d. less than average variable cost..

13. Incorrect. You did not provide an answer.

A natural monopolyrefers to a monopoly that is defended from direct competition by

14. Incorrect. You did not provide an answer.

The correct answer was: d. All of the above are correct..

15. Incorrect. You did not provide an answer.

The short-run supply curve of a perfectly competitive firm

16. Incorrect. You did not provide an answer.

The long-run supply curve of a perfectly competitive firm

17. Incorrect. You did not provide an answer.

A depreciation of the U.S. dollar relative to foreign currencies will make

18. Incorrect. You did not provide an answer.

The correct answer was: d. All of the above are correct..

19. Incorrect. You did not provide an answer.

A monopolized market is in long-run equilibrium when

20. Incorrect. You did not provide an answer.

21. Incorrect. You did not provide an answer.

Which of the following types of firms is likely to be a monopolistic competitor?

The correct answer was: c. A restaurant..

22. Incorrect. You did not provide an answer.

Which of the following is a differentiated product?

23. Incorrect. You did not provide an answer.

The correct answer was: a. Few sellers..

24. Incorrect. You did not provide an answer.

The demand curve faced by a monopolistically competitive firm is

The correct answer was: b. elastic..

25. Incorrect. You did not provide an answer.

If an imperfectly competitive firm is producing a level of output where marginal cost is

The correct answer was: d. None of the above is correct..

26. Incorrect. You did not provide an answer.

If an imperfectly competitive firm is producing a level of output where marginal cost is

The correct answer was: c. minimizing short-run average total cost..

27. Incorrect. You did not provide an answer.

Product variation refers to

The correct answer was: a. an activity undertaken by a firm to increase demand..

28. Incorrect. You did not provide an answer.