Observe an increase in total revenue

Assignment Help Microeconomics

Reference no: EM13726559

1. If, in the short run, a perfectly competitive firm is producing at a point where total cost is greater than total revenue, then the firm should shut down because economic profits are negative.

continue to produce as long as P > AVC.

continue to produce because accounting profits are positive.

set a higher price for its output.

set a lower price for its output.

Question 2. Retail outlets operate in which of the following market structures?

perfect competition

monopolistic competition

oligopoly

monopoly

oligopsony

Question 3. A monopolist will have a marginal revenue curve that is identical to the demand curve.

identical to the marginal cost curve.

below the demand curve.

above the marginal cost curve.

Question 4. If a monopoly firm observes an increase in total revenue following a price increase, which of the following must be true?

MR > 0

MR < 0

MR = 0

MR = TR

Question 5. For a perfectly competitive firm, the demand curve is the marginal revenue curve.

perfectly inelastic.

always equal to marginal cost.

the same as the market demand curve.

Question 6. Monopolistic competition and oligopoly are examples of monopoly.

perfect competition.

theories of consumer behavior.

imperfect competition.

the extreme cases on the market structure continuum.

Question 7. The marginal cost curve above the minimum average variable cost indicates points where the firm will realize an economic profit.

covers the area where a firm should shut down.

is equal to the firm's marginal revenue curve.

is the firm's short-run supply curve.

Question 8. If the demand curve of a monopolist is in the inelastic range, then total revenue will fall if price increases.

total revenue will be unchanged if price increases.

total revenue will rise if price increases.

total supply will increase by an equal amount if demand increases.

price will be unchanged if total revenue increases.

Question 9. In a perfectly competitive industry, if TR > TC, then in the long run firms will exit the industry.

new firms will enter the industry.

there will be no change in the number of firms.

market supply will shift to the left.

firms will make economic profits.

Question 10. The greater the price elasticity of the demand curve that the firm faces in monopolistic competition, the higher the degree of competition in the industry.

the lower the degree of competition in the industry.

the fewer substitutes for the good produced.

the easier it is for the firm to raise its price.

the less sales the firm will gain from a price decrease.

Reference no: EM13726559

Questions Cloud

Questions related to normalization : Determine the steps in the development of an effective Entity Relationship Model (ERM) Diagram and determine the possible iterative steps / factors that one must consider in this process with consideration of the HR core functions and responsibili..

How were the governments of the roman republic : How were the governments of the Roman Republic and the Roman Empire different?

What are theories about why there was a witch scare in salem : What are 3 theories about why there was a witch scare in Salem in 1962.

Describe two innovative partnership programming ideas : Please describe two innovative partnership programming ideas that would reach and be implemented for the following target groups: Teens (13-17) and older Adults (55+)

Observe an increase in total revenue : Retail outlets operate in which of the following market structures - If a monopoly firm observes an increase in total revenue following a price increase, which of the following must be true?

What are some ways you can motivate your employees : Employee training. You have hired several people to run your lemonade stand, as you simply are too involved in the strategic aspects of the business. As such, you have seen sales drop. What are some ways you can motivate your employees to improve ..

How american work to secure their places in social hierarchy : How did your chosen group African American work to secure their places in the social and political hierarchy. Why was the last half of the 1800s a time of conflict over the meanings of citizenship in relation to race, ethnicity, and gender?

Create a new website : Create a new Website, Add the PlanetWrox.mdf into App_Data of your website, Save the new solution under the same folder as the website.

Develop a creative name for your lemonade stand : Background: As you have read about in our lecture, we have used a lemonade stand to help us understand some basic concepts of business. Develop a creative name for your Lemonade Stand, and then explain why a name is important when you are ..

User Account

All Pages