Which of the following is not a type of market structure? a. Competitive monopoly b. Oligopoly c. Perfect competition d.

All of the above are types of market structures.

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 a. a monopolist. b. an oligopolist. c. a perfect competitor. d. a monopolistic 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 a. a monopolist. b. an oligopolist. c. a perfect competitor. d. a monopolistic competitor.

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 a. a monopolist. b. an oligopolist. c. a perfect competitor. d. a monopolistic competitor.

Which of the following markets comes close to satisfying the assumptions of a perfectly competitive market structure? a. The stock market. b. The market for agricultural commodities such as wheat or corn. c. The market for petroleum and natural gas. d. All of the above come close to satisfying the assumptions of perfect competition.

Which of the following types of firms is likely to be a monopolistic competitor? a. A local telephone company. b. An automobile manufacturer. c. A restaurant. d. All of the above are likely to be monopolistic competitors.

Marginal revenue is equal to price for which one of the following types of market structure? a. Monopoly b. Perfect competition c. Monopolistic competition d. Oligopoly

If the output levels at which shortrun marginal and average cost curves reach a minimum are listed in order from smallest to greatest, then the order would be a. AVC, MC, ATC b. ATC, AVC, MC c. MC, AVC, ATC d. AVC, ATC, MC

Which of the following shortrun cost curves declines continuously? a. Average total cost b. Marginal cost c. Average fixed cost d. Average variable cost

Breakeven analysis identifies the a. profit-maximizing level of output. b. level of output where economic profit is equal to zero. c. level of output where marginal revenue is equal to marginal cost. d. All of the above are correct.

The demand curve for this firm is equal to

A) B) C) D)

average variable cost (ATC) marginal cost (MC) average total cost (ATC) marginal revenue (MR)

Total revenue for producing 10 units of output is $6. Total revenue for producing 11 units of output is $8. Given this information, the A) average revenue for producing 11 units is $2. B) average revenue for producing 11 units is $8. C) marginal revenue for producing the 11th unit is $8. D) marginal revenue for producing the 11th unit is $2.

At the profit-maximizing output for the firm above, the total variable costs are equal to the area A) 0fbn B) 0ecn C) 0gan D) gfba

Which statement is FALSE?

a Fixed costs do not depend on the firm's level of output. b There are no fixed costs in the long run. c Fixed costs are the difference between total costs and total variable costs. d Fixed costs are zero if the firm is producing nothing.

Which of the following is most likely to be a variable cost for a firm?

a The payroll taxes that are paid on employee wages. b The interest payments made on loans. c The franchiser's fee that a restaurant must pay to the national restaurant chain. d The monthly rent on office space that it leased for a year.

The costs that depend on output in the short run are: a total costs only. b both total variable costs and total costs. c total fixed cost only. d total variable costs only.

A business has total fixed costs of Rs 15,000 per month. The selling price is Rs 10.50 per unit. The cost per unit has been estimated as follows: Labour Rs 5.00 Materials Rs 3.00 Fixed costs Rs 1.75 Total Rs 9.75 The amount, in units, that it will be necessary to sell each month to break even will be:

A B C D

7,600 6,000 2,000 1,583

When marginal revenue is equal to 0: A) Profits are maximized B) Costs are minimized C) Total revenue is maximized D) A firm will close down

If the marginal revenue is Rs 10 and the marginal cost is Rs 8, the firm should __________. A) Lower output B) Raise output C) Raise price D) Close down

Output (sandwiches per hour)

Average total cost (Rsper sandwich)

17.00

2
3 4 5 6

10.00
8.00 8.00 8.80 10.00

The table above shows output and costs of Evan's Subs, a typical perfectly competitive firm in a local market for sandwiches. Evan's fixed cost is Rs 9 per hour. The current market price of a sandwich is Rs6. What is Evan's marginal revenue from the 2nd sandwich sold? A) 10.00 B) 13.50 C) 3.00 D) 6.00

In the above figure, the line represented by the "2" is the A) average fixed cost. B) average variable cost. C) total cost. D) average total cost.

In the above figure, the line represented by the "1" is the A) average fixed cost. B) marginal revenue. C) total cost. D) average total cost.

A firm's shutdown point is the output and price at which the firm just covers its A) total fixed cost. B) total variable cost. C) total cost. D) marginal cost.