Question 1

If a business is losing money in the short run,the owner will try to minimize

Accepted Answer

A)  losses per unit of output.
B)  total cost.
C)  total losses.
D)  output.
E)  variable costs.

Question 2

How much is the firm's output at the break-even point?

Accepted Answer

The answer of How much is the firm's output at...

Question 3

Statement I: A perfect competitor has a perfectly inelastic demand curve.
Statement II: The perfect competitor's demand curve and marginal revenue curve are identical.

Accepted Answer

A)  Statement I is true and statement II is false.
B)  Statement II is true and statement I is false.
C)  Both statements are true.
D)  Both statements are false.

Question 4

-What is the lowest price the firm would accept in the short run?

Accepted Answer

The answer of 
-What is the lowest price the firm...

Question 5

-The crucial aspect of competition among firms that leads to the condition of zero profits in the long run is

Accepted Answer

A)  the number of firms in the industry is fixed.
B)  free entry and exit of firms in the industry.
C)  fixed costs equal zero.
D)  all costs are at their least cost level.

Question 6

The closest a firm can come to being a perfect competitor would be

Accepted Answer

A)  a corn farmer in Kansas.
B)  the owner of a small grocery store in St.Louis
C)  a used car dealer.
D)  a free agent major league baseball player.

Question 7

-The firm's most efficient output

Accepted Answer

A)  is OR.
B)  is OS.
C)  is OT.
D)  None of the choices are correct.

Question 8

Which statement is true about the perfect competitor in the short run?

Accepted Answer

A)  He may make a profit,but he won't take a loss.
B)  He may take a loss,but he won't make a profit.
C)  He will break-even.
D)  None of the statements are true.

Question 9

-The implicit cost of a farmer's own labor is determined by

Accepted Answer

A)  the cost of food,clothing,and shelter.
B)  the price of the products sold.
C)  wages in farming occupations.
D)  the cost of purchased inputs.

Question 10

Profits are zero when __________ = ___________ = __________.

Accepted Answer

marginal c...

Question 11

-Label the break-even point.

Accepted Answer

The answer of 
-Label the break-even point....

Question 12

Marginal cost is the ___________________;marginal revenue is the ______________.

Accepted Answer

additional cost of producing o...

Question 13

Which statement is true?

Accepted Answer

A)  A firm will operate in the short run if total revenue is greater than variable costs.
B)  A firm will shut down if variable costs are greater than total revenue.
C)  A firm is operating at peak efficiency if its average total cost is held to a minimum.
D)  All of the statements are true.

Question 14

If the perfect competitor is making a profit,its output will be ____ it's most efficient output.

Accepted Answer

A)  more than
B)  equal to
C)  less than

Question 15

Given the information that follows,how much is the Foley family business's (a)accounting profits? (b)Economic profits? Sales: $4 million;total costs: $3.7 million;return they could have earned elsewhere: $80,000;wages the family members could have earned doing the same work for another firm: $250,000.

Accepted Answer

Total revenue ($4,000,000)- To...

Question 16

-Profit-maximizing price level

Accepted Answer

A)  is OE.
B)  is OF.
C)  is OG.
D)  cannot be found on this graph.

Question 17

If the perfect competitor is taking a loss,its output will be _______ it's most efficient output.

Accepted Answer

A)  greater than
B)  equal to
C)  less than

Question 18

-Label the shutdown point.

Accepted Answer

The answer of 
-Label the shutdown point....

Question 19

At an output of 22,ATC is $7 and price is $7.At an output of 23,ATC is $7 and price is $7.MC = MR at an output of 22.5.At that output the firm will

Accepted Answer

A)  take a loss.
B)  break-even.
C)  make a profit.

Question 20

Perfect competition is a competitive _________,which probably does not exist.

Accepted Answer

The answer of Perfect competition is a competitive _________,which probably...

Exam 21: Profit, loss, and Perfect Competition

How much is the firm's output at the break-even point?

Correct Answer
verified

-The implicit cost of a farmer's own labor is determined by

Correct Answer
verified

Which statement is true about the perfect competitor in the short run?

Correct Answer
verified

-The crucial aspect of competition among firms that leads to the condition of zero profits in the long run is

Correct Answer
verified

-Label the shutdown point.

Correct Answer
verified

Perfect competition is a competitive _________,which probably does not exist.

Correct Answer
verified

The closest a firm can come to being a perfect competitor would be

Correct Answer
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Profits are zero when ____ = _ = ______.

Correct Answer
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marginal c...
View Answer

-Label the break-even point.

Correct Answer
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At an output of 22,ATC is $7 and price is $7.At an output of 23,ATC is $7 and price is $7.MC = MR at an output of 22.5.At that output the firm will

Correct Answer
verified

-Profit-maximizing price level

Correct Answer
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-The firm's most efficient output

Correct Answer
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Correct Answer
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Total revenue ($4,000,000)- To...
View Answer

Statement I: A perfect competitor has a perfectly inelastic demand curve. Statement II: The perfect competitor's demand curve and marginal revenue curve are identical.

Correct Answer
verified

-What is the lowest price the firm would accept in the short run?

Correct Answer
verified

If the perfect competitor is taking a loss,its output will be _______ it's most efficient output.

Correct Answer
verified

Marginal cost is the _____;marginal revenue is the .

Correct Answer
verified
additional cost of producing o...
View Answer

If the perfect competitor is making a profit,its output will be ____ it's most efficient output.

Correct Answer
verified

Which statement is true?

Correct Answer
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If a business is losing money in the short run,the owner will try to minimize

Correct Answer
verified

Exam 21: Profit, loss, and Perfect Competition

How much is the firm's output at the break-even point?

Correct AnswerverifiedShow Answer

-The implicit cost of a farmer's own labor is determined by

Correct AnswerverifiedShow Answer

Which statement is true about the perfect competitor in the short run?

Correct AnswerverifiedShow Answer

-The crucial aspect of competition among firms that leads to the condition of zero profits in the long run is

Correct AnswerverifiedShow Answer

-Label the shutdown point.

Correct AnswerverifiedShow Answer

Perfect competition is a competitive _________,which probably does not exist.

Correct AnswerverifiedShow Answer

The closest a firm can come to being a perfect competitor would be

Correct AnswerverifiedShow Answer

Profits are zero when __________ = ___________ = __________.

Correct Answerverifiedmarginal c...View AnswerShow Answer

-Label the break-even point.

Correct AnswerverifiedShow Answer

At an output of 22,ATC is $7 and price is $7.At an output of 23,ATC is $7 and price is $7.MC = MR at an output of 22.5.At that output the firm will

Correct AnswerverifiedShow Answer

-Profit-maximizing price level

Correct AnswerverifiedShow Answer

-The firm's most efficient output

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTotal revenue ($4,000,000)- To...View AnswerShow Answer

Statement I: A perfect competitor has a perfectly inelastic demand curve. Statement II: The perfect competitor's demand curve and marginal revenue curve are identical.

Correct AnswerverifiedShow Answer

-What is the lowest price the firm would accept in the short run?

Correct AnswerverifiedShow Answer

If the perfect competitor is taking a loss,its output will be _______ it's most efficient output.

Correct AnswerverifiedShow Answer

Marginal cost is the ___________________;marginal revenue is the ______________.

Correct Answerverifiedadditional cost of producing o...View AnswerShow Answer

If the perfect competitor is making a profit,its output will be ____ it's most efficient output.

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

If a business is losing money in the short run,the owner will try to minimize

Correct AnswerverifiedShow Answer

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Profits are zero when ____ = _ = ______.

Correct Answer
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marginal c...
View Answer

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Total revenue ($4,000,000)- To...
View Answer

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Correct Answer
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Correct Answer
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Marginal cost is the _____;marginal revenue is the .

Correct Answer
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additional cost of producing o...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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