Navigation » List of Schools » Glendale Community College » Economics » Econ 101 – Microeconomics » Summer 2021 » iVAT Chapter 13
Below are the questions for the exam with the choices of answers:
Question #1
A Some firms will exit this market and the price will remain at P1.
B New firms will enter this market and the price will return to P0.
C New firms will enter this market and the price will remain at P1.
D Some firms will exit this market and the price will return to P0.
Question #2
A New firms will enter this market and price will return to P0.
B Some firms will exit this market and price will return to P0.
C Some firms will exit this market and price will remain at P1.
D New firms will enter this market and price will remain at P1.
Question #3
A The firm’s output remains at q0 because perfectly competitive firms can’t earn positive economic profit.
B Market price rises from P0 to P1 and the firm’s output rises from q0 to q1.
C Market price rises from P0 to P1 and the firm’s output rises from Q0 to Q1.
D Market price remains at P0 because perfectly competitive firms can’t earn positive economic profit.
Question #4
A Output of the firm shown in the graph is the same as quantity supplied in the market.
B Firm shown in the graph will produce q0, but all the firms in the market will produce a total of Q0.
C Firm is not producing at the output where profit is maximized.
D Firm shown in the graph will produce q1, but all the firms in the market will produce a total of Q1.
Question #5
A This market is in short-run equilibrium but not long-run equilibrium.
B This market is in long-run equilibrium because the firm is earning zero economic profit.
C The firm will raise the price above P0 to increase profit.
D This market is in long-run equilibrium because the firm is earning positive economic profit.
Question #6
A Continue to produce in the short run but shut down in the long run.
B Shut down in the short run but continue production in the long run.
C Continue to produce in both the short run and the long run.
D Shut down immediately.
Question #7
A If price was equal to, or went below AVC.
B If price was equal to, or went above AVC.
C Once fixed costs decrease, or the ATC curve shifts downwards.
D Once fixed costs increase, or the ATC curve shifts upwards.
Question #8
A Yes, due to the fact that the shutdown loss is -$169. This is much smaller than the operating loss.
B No, due to the fact that the operating loss is -$24, which is much smaller than the loss incurred if they were to shutdown. If they were to shutdown, the loss would equal the fixed costs or -$84.50.
C No, due to the fact that the operating loss is -$48, which is much smaller than the loss incurred if they were to shutdown. If they were to shutdown, the loss would equal the fixed costs or -$169.
D No, due to the fact that the operating loss is -$24, which is much smaller than the loss incurred if they were to shutdown. If they were to shutdown, the loss would equal the fixed costs or -$84.50. However, the firm should shutdown once the price goes above average variable costs.
Question #9
A Economic profits are positive, and the quantity supplied from the firm is 120 units per day.
B Economic profits are negative, which means there is economic losses, and the quantity supplied from the firm is 80 units per day.
C Economic profits are negative, which means there is economic losses, and the quantity supplied from the firm is 60 units per day.
D Economic profits are negative, which means there is economic losses, and the quantity supplied from the firm is 100 units per day.
Question #10
A Economic profits are $100 and the quantity supplied from the firm is 100 units per day.
B Economic profits are $0 and the quantity supplied from the firm is 100 units per day.
C Economic profits are -$100 and the quantity supplied from the firm is 80 units per day.
D Economic profits are $500 and the quantity supplied from the firm is 200 units per day.
Question #11
A The prevailing price is $4 and economic profits are $0.
B MC >MR.
C The prevailing price is $8 and economic profits are positive.
D The prevailing price is $3 and economic profits are negative.
Question #12
A The firm will earn $0 in economic profits.
B The firm will earn economic profits.
C Average cost of the product will be at the minimum possible level.
D Output will be 100 units per day.
Question #13
A Are the total labor costs from production.
B Are the total costs of production.
C Are the amount of labor that needs to be employed.
D Is the amount of money that could have been earned by renting out that firm’s capital.
Question #14
A –$30.
B $30
C $0
D $38
Question #15
A $0
B $38
C –$38.
D $30
Question #16
A Increase output from 650 to 750.
B Continue to produce 850 units.
C Produce 850 units of output.
D Decrease output from 850 to 750.
Question #17
A 650 units of output.
B 850 units of output.
C Between 550 and 650 units of output.
D 450 units of output.
Question #18
A Quantity supplied is 27.
B Quantity supplied is 25.
C Quantity supplied is 26.
D Quantity supplied is greater than 25, but less than 27.
Question #19
A Supply curve.
B Horizontal demand curve.
C Profit per unit.
D None of the available answers.
E Demand curve.
Question #20
A 40 units of output.
B 50 units of output.
C 30 units of output.
D 60 units of output.
Question #21
A $3.00.
B $3.50.
C $5.00.
D $6.50.
Question #22
A $6.50 and marginal revenue for the firm is $6.50.
B $5.00 and marginal revenue for the firm is $3.00.
C $6.50 and marginal revenue for the firm is $5.00.
D $5.00 and marginal revenue for the firm is $5.00.
Question #23
A TRUE
B FALSE
Question #24
A FALSE
B TRUE
Question #25
A Downward-sloping.
B A vertical line.
C Upward-sloping.
D A horizontal line.
Question #26
A Perfectly inelastic.
B Perfectly elastic.
C Relatively inelastic.
D Relatively elastic.
Question #27
A Energy drinks.
B Soy beans.
C Soda.
D Textbooks.
Question #28
A Fast-food industry.
B Corn production.
C Automobile production industry.
D Landscaping industry.
Question #29
A Buyers are often price takers, but sellers are usually price makers.
B Both buyers and sellers are usually price makers.
C Buyers are often price makers, but sellers are usually price takers.
D Both buyers and sellers are usually price takers.
Question #30
A Both sellers and consumers are price takers and have no impact on the price in the market.
B Both sellers and consumers are not price takers and can impact the price in the market.
C Sellers are price takers, but consumers do have an impact on the price.
D Consumers are price takers, but sellers do have an impact on the price.
Question #31
A Chooses own price based on the demand curve it faces.
B Chooses its own price, but after consulting with other comp.anies
C Chooses output in response to a market-determined price.
D Chooses the price it sells at.
E Chooses output based off of weather conditions.
Question #32
A Because it allows us to analyze how markets work when the invisible hand is completely impeded and market forces are not allowed to work. This can be used as a reference point when analyzing a market that is perfectly competitive.
B Because it allows us to analyze how markets work when the invisible hand is completely impeded and market forces are not allowed to work. This can be used as a reference point when analyzing a market that is not perfectly competitive.
C Because it allows us to analyze how markets work when the invisible hand is completely unimpeded. This can be used as a reference point when analyzing a market that is not perfectly competitive.
D Due to the fact that perfect competition is an optimal economic situation.