Ask Question, Ask an Expert


Ask Business Economics Expert

Multiple choice problems on Perfect competition

1) Which of the subsequent is not necessarily a characteristic of perfect competition?

a) low prices
b) a large number of buyers and sellers
c) a homogeneous product
d) perfect information

2) In the short run, a perfectly competitive ball bearing manufacturer will continue to capable to produce at a loss if

a) It is covering all of its fixed cost

b) it is covering all of its variable cost plus part of its fixed cost

c) Variable cost is less than fixed cost

d) Fixed cost is zero

3) The golden rule of profit maximization states which any company maximizes profit by producing where marginal revenue equals marginal cost

a) Demand is unit elastic, and total revenue is greatest

b) Price equals marginal revenue

c) Price equals marginal cost

4) Which of the characteristics of perfect competition assures which economic profit will be zero in the long run?

a)   There is easy entry and exit in the market.

b)   Each company is a price taker.

c)  Each company has access to perfect information.

d) Each company is small relative to the market.

 5) A constant-cost company is distinguished by the fact which

a) Companies' short-run average total costs are horizontal

b) Companies' short-run marginal cost curves are horizontal

c) The long-run company supply curve is perfectly elastic

d) The short-run company supply curve is perfectly elastic

6) Commodity products are

a) Pasteurized

b) bland

c) perceived by consumers to be identical

d) made by one manufacturer

7) In a perfectly competitive company we are likely to find

a)  Companies producing a wide variety of products

b)  Barriers to entry

c)  No profit possible in the short run

d)  Companies which do not advertise

8) Perfectly competitive companies are price takers because

a)  all small companies must take the price set by the largest company in the market

b)  companies take the price which government determines is a "fair" price

c)  each company is small and goods are perfect substitutes for one another

d)  free entry and exit in the short run creates a constant market price in the long run

9) In perfect competition, if one company raises its price,

a) others will follow

b) which company will increase its revenues

c) which company will lose revenues because other companies will not follow

d) all consumers will be adversely affected

10) Suppose, at its present rate of output, a perfectly competitive company's marginal revenue exceeds both its marginal cost and its average variable cost. To maximize profit, the company should

a) lower the price

b) raise the price

c) increase output

d) reduce output

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917001

Have any Question? 

Related Questions in Business Economics

Assignmentarticle reportplease select a marketing topic you

Assignment Article Report Please select a marketing topic you learned and then search in the Wall Street Journal (either online or hardcopy *) and select an article about that topic within the last 12 months. To do this, ...

Chapter 1 managing changeq1 figure 176 shows how bad an

Chapter 1 Managing change Q1 Figure 1.76 shows how bad an implementation can become. Action needs to be taken to prevent this kind of situation. What would you recommend should be done? Q2 You are the project manager for ...

1what is the production possibilities curve and how is it

1. What is the production possibilities curve and how is it useful? 2. What 4 factors contribute to determining any point in this model? 3. How would we apply this framework to the real world? 4. You are planning to expa ...

Assignmentyou must submit 2 files to this link once done as

Assignment You must submit 2 files to this link once done as follows: Part 1) An MS Excel spreadsheet (.xls or .xlsx no other file formats will be accepted) use the dataset spreadsheet provided for the assignment and inc ...

Cite the sources used to answer this question provide the

Cite the source(s) used to answer this question. Provide the source(s) below your response and apply APA guidelines for references. 1) Class, is it possible for a business to show an accounting profit, but actually earn ...

Assignment -consider the following cobb douglas production

Assignment - Consider the following Cobb Douglas production function where Y is maize output, X 1 is labour input, and X 2 is the capital. Data for estimating this equation is given in the Table below. Y = β 0 X 1i β_1 X ...

Assignmentinstructions1 select an illegal activity and

Assignment Instructions 1. Select an illegal activity and transform/mask its' true purpose with the disguise of a legitimate business operation. In other words, create a start-up business that would be viewed as a legal ...

Assessment task in this assessment students are required to

ASSESSMENT TASK: In this assessment, students are required to demonstrate their ability to apply economic principles learnt in this subject to analysing real-world business operations and evaluate how their long-run busi ...

In the united states as in most countries we value the

In the United States, as in most countries, we value the benefits of a free and competitive market. This suggests an interesting question: what if there were to be no Antitrust laws or other regulations on business activ ...

What is the relationship between economy business and

What is the relationship between economy, business, and society? -6 page essay (includes only ONE page for references,but the cover page is not included in the 6 page requirement) -Double spaced -APA format

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen