Foundations of economics 6th by parkin ch15 clicker questions

Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem © 2013 Pearson Perfect Competition 15 CLICKER QUESTIONS © 2013 Pearson Click Clickon onthe thebutton buttontotogo gototothe theQuestion problem Checkpoint 15.1 Checkpoint 15.2 Checkpoint 15.3 Question Question 11 Question Question 55 Question Question 88 Question Question 22 Question Question 66 Question Question 99 Question Question 33 Question Question 77 Question Question 10 10 Question Question 44 © 2013 Pearson CHECKPOINT 15.1 Question A perfectly competitive firm is a price taker because _ A B C D E many other firms produce the same product only one firm produces the product many firms produce a slightly differentiated product a few firms compete there are no barriers to entry © 2013 Pearson CHECKPOINT 15.1 Question A perfectly competitive firm maximizes its profit by producing at the output at which _ A B C D E total revenue equals total cost marginal revenue is equal to marginal cost total revenue is equal to marginal revenue total cost is at its minimum total revenue is at its maximum © 2013 Pearson CHECKPOINT 15.1 Question The figure shows cost curves for a perfectly competitive dry cleaner If the price of dry cleaning a shirt is $10 per shirt, the firm will dry clean shirts an hour A B C D E between and 49 50 60 61 or more © 2013 Pearson CHECKPOINT 15.1 Question If the market price is below the perfectly competitive firm’s average total cost, the firm will _ A immediately shut down B continue to produce if the price exceeds the average fixed cost C continue to produce if the price exceeds the average variable cost D shut down if the price exceeds the average fixed cost E shut down if the price is less than the average fixed cost © 2013 Pearson CHECKPOINT 15.2 Question A perfectly competitive firm makes a positive economic profit in the short run if the market price of the good produced is _ of producing it A B C D E equal to marginal cost equal to average total cost greater than average total cost greater than marginal cost greater than average variable cost © 2013 Pearson CHECKPOINT 15.2 Question Juan’s Software Service Company is a perfectly competitive firm Juan’s total fixed cost is $25,000, its average variable cost for 1,000 service calls is $45, and its marginal revenue is $75 Juan’s makes 1,000 service calls a month Juan’s makes an economic profit of a month A B C D E $5,000 $25,000 $45,000 $75,000 $50,000 © 2013 Pearson CHECKPOINT 15.2 Question A perfectly competitive firm is producing the output at which marginal cost is $12 a unit and its average total cost is $8 a unit If the market price is $10 a unit, the firm A B C D E is maximizing its profit will increase its profit if it produces a larger output will increase its profit if it raises its price to $12 a unit will increase its profit if it produces a smaller output is making zero economic profit © 2013 Pearson CHECKPOINT 15.3 Question As a result of firms leaving the perfectly competitive frozen yogurt market in the early 2000s, the market _ A supply of frozen yogurt decreased B supply of frozen yogurt did not change, but the market demand for frozen yogurt did C demand for frozen yogurt increased D supply of frozen yogurt increased E demand for frozen yogurt increased © 2013 Pearson CHECKPOINT 15.3 Question In the long run, new firms will enter a perfectly competitive market when firms in the market are _ A B C D E making zero economic profit increasing output in order to maximize profit incurring economic losses making positive economic profits shutting down temporarily to reduce their economic losses © 2013 Pearson CHECKPOINT 15.3 Question 10 Firms in a competitive market are incurring economic losses In the long run, firms exit the market and as they do, the economic losses of the remaining firms A increase because the market demand for the good decreases B decrease until the remaining firms break even C decrease until the remaining firms make economic profits D not change E increase because the market demand for the good does not change © 2013 Pearson ... D E is maximizing its profit will increase its profit if it produces a larger output will increase its profit if it raises its price to $12 a unit will increase its profit if it produces a smaller... Question A perfectly competitive firm makes a positive economic profit in the short run if the market price of the good produced is _ of producing it A B C D E equal to marginal cost equal to average... zero economic profit © 2013 Pearson CHECKPOINT 15.3 Question As a result of firms leaving the perfectly competitive frozen yogurt market in the early 2000s, the market _ A supply of frozen yogurt