Question
18 of25 A farmer, selling corn, can sell as much as he wants, as long as ______________. the farmer accepts the prevailing market price the
18 of25
A farmer, selling corn, can sell as much as he wants, as long as ______________.
the farmer accepts the prevailing market price | |
the market is fully flexible | |
the farmer is selling on margin | |
the market for corn has high demand |
Question
19 of25
A perfectly competitive firm is a price taker because
it is in the agricultural sector. | |
pressure from competing firms force it to accept the market price. | |
the government regulates it. | |
It sells brand-name goods. |
Question
20 of25
The profit-maximizing rule for a perfectly competitive firm, is to produce : at the quantity of output where:
P < MC. | |
where Q > P. | |
where D = P. | |
at the quantity of output where P = MC. |
Question
21 of25
Productive Efficiency means that firms are
producing inside the production possibility frontier. | |
making profits. | |
producing on the production possibility frontier. | |
producing the maximum possible output. |
Question
22 of25
A profit-seeking, perfectly competitive firm, should keep expanding production, as long as:
MR = MC. | |
MC = ATC. | |
MR > MC. | |
MC > MP. |
Question
23 of25
In a perfectly competitive market, if the price the firm receives leads it to produce at a quantity where the price is less than the average cost, the firm will
earn a profit. | |
will earn zero profits. | |
The average product will rise. | |
experience a loss. |
Question
24 of25
A perfectly competitive firm is maximizing its profits when
MR = MC | |
total revenue is at a maximum | |
total cost is at a minimum | |
average cost is at a minimum |
Question
25 of25
For a perfectly competitive firm, if Price < average total cost, the average="" total="" cost,="">
firm will take a loss. | |
firm will have zero economic profits. | |
firm will increase output. | |
marginal revenue will decrease. |
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