For these 30 MCQS please answer only if your are sure of the answers. Skip it if not sure please. And i will give thumbs up.

Marginal revenue is the change in

Group of answer choices

Total revenue when output is changed.

Average revenue when price is changed.

Average revenue when output is changed.

Total revenue when price is changed.

None of the Answers are Correct.

A firm's total revenue can be determined by

Group of answer choices

Total costs minus variable costs.

Profits minus costs.

Price times quantity.

Fixed costs minus quantity.

None of the Answers are Correct.

The demand curve confronting a competitive firm

Group of answer choices

Equals the Marginal Profit Curve.

Slopes downward, while the market demand curve is horizontal.

Slopes downward, and the marginal revenue curve is below it.

Is horizontal, as is the market demand curve is downward-sloping.

All of the Answers are Correct.

If a perfectly competitive firm wanted to maximize its total revenues, it would produce

Group of answer choices

The output where the marginal cost curve is at a minimum.

None of the Answers are Correct.

As much as it is capable of producing.

The output where MC equals price.

The output where the ATC curve is at a minimum.

In order to sell additional units of their products, competitive firms must

Group of answer choices

Lower their price.

Increase their advertising.

Increase output.

Cut their expenses.

A competitive firm

Group of answer choices

None of the Answers are Correct.

Is a price taker.

Is large enough relative to the market to be taken into account by competitors.

Confronts a downward-sloping firm demand curve.

Has the market power to compete effectively.

If a firm can change market prices by altering its output, then it

Group of answer choices

Faces a horizontal demand curve.

Has market power.

Is a price taker.

Is a competitive firm.

None of the Answers are Correct.

Market structure is determined by the

Group of answer choices

Price charged for the good or service produced.

Number and relative size of the firms in an industry.

Amount of compensation given to the CEOs.

None of the Answers are Correct.

Annual revenue, costs, and profits for an industry.

Normal profit

Group of answer choices

Is sufficient to induce entry into the industry

Covers the full opportunity cost of the resources used by the firm.

Is an above-average rate of return.

Is the accounting profit earned when economic profits are greater than zero.

None of the Answers are Correct.

Profit

Group of answer choices

Is the difference between variable costs and fixed costs.

Is always a number greater than zero.

Must be reported to Wall Street quarterly.

Is the difference between total revenue and total cost.

None of the Answers are Correct.

To determine the market supply, the quantities

Group of answer choices

Demanded at each price by each demander and supplied at each price by each supplier are added together.

Supplied at each price by each supplier are added together.

None of the Answers are Correct.

Demanded at each price by each demander are added together.

Demanded at each price by each demander are subtracted from the quantities supplied at each price by each supplier.

The market supply curve in a perfectly competitive market is usually

Group of answer choices

Downward-sloping.

Upward-sloping.

Vertical.

None of the Answers are Correct.

Horizontal.

If someone invents a machinefor a better way to produce frozen pizzas, then

Group of answer choices

None of the Answers are Correct.

There will be a movement down along the market supply curve for frozen pizzas.

There will be a movement up along the market supply curve for frozen pizzas.

The market supply curve for frozen pizzas will shift to the left.

The market supply curve for frozen pizzas will shift to the right.

Which of the following is characteristic of a perfectly competitive market?

Group of answer choices

Exit of small firms when profits are high for large firms.

None of the Answers are Correct.

Zero economic profit in the long run.

Marginal revenue lower than price for each firm.

A small number of firms.

The entry of firms into a market

Group of answer choices

Increases the equilibrium price.

All of the Answers are Correct.

Shifts the market supply curve to the left.

Shifts the market demand curve to the left.

Reduces the profits of existing firms in the market.

Examples of barriers to entry include

Group of answer choices

Economic profits.

Patents.

Price taking.

None of the Answers are Correct.

Standardized products.

To maximize profits, a competitive firm will seek to expand output until

Group of answer choices

Total revenue equals total cost.

The elasticity of demand equals 1.

Price equals $0.

Price equals marginal cost.

All of the Answers are Correct.

Profit per unit is equal to

Group of answer choices

Price divided by average total cost.

Total revenue minus variable cost divided by quantity.

Total revenue minus total cost.

Price minus average total cost.

Profit per unit isMaximized when the Firm Produces atOutput Where.......

Group of answer choices

MC Equals MR " Marginal Cost is equal to Marginal Revenue"

None of the Answers are Correct.

Demand Equals MC (MC is Marginal Costs)

The ATC is Minimized

All of the Answers are Correct

Marginal cost pricing means that a firm

Group of answer choices

All of the Answers are Correct.

Produces up to the output level at which MC = 0 for a given market price.

Produces up to the output where P = MC for a given market price.

Lowers market price to marginal cost for a given output.

Lets marginal cost rise to the market price for a given output.

If a firm can change market prices by altering its output, then it

Group of answer choices

Is a price taker.

Faces a flat demand curve.

Engages in marginal cost pricing.

None of the Answers are Correct.

Has market power.

Monopolists are price

Group of answer choices

Makers, as are competitive firms.

None of the Answers are Correct.

Takers, as are competitive firms.

Takers, but competitive firms are price makers.

Makers, but competitive firms are price takers.

A monopolist has market power because it

Group of answer choices

Is a price taker.

Faces a downward-sloping demand curve for its own output.

Can raise price as much as it wishes and not lose any customers.

Is regulated by the government.

none of the Answers are Correct.

A monopolist will find that its marginal revenue curve

Group of answer choices

Lies below its demand curve and is steeper than its demand curve.

Lies below its demand curve and has the same slope as its demand curve.

Is the same as its demand curve.

None of the Answers are Correct.

Lies above its demand curve and is flatter than its demand curve.

Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $50 to $650 per bicycle. The marginal revenue of the 11th bicycle is

Group of answer choices

$7,150

$150

-$50

$50

None of the Answers are Correct.

Monopolists set prices

Group of answer choices

On the marginal revenue curve.

At the minimum of the long-run average total cost curve.

At the output where marginal revenue equals marginal cost.

Without constraints since there is no competition.

None of the Answers are Correct.

Which of the following rules is satisfied when a monopoly maximizes profits?

Group of answer choices

MR > MC.

Price = AVC.

Price < MC.

None of the Answers are Correct.

MR = MC.

The price charged by a profit-maximizing monopolist occurs

Group of answer choices

At a price on the demand curve above the intersection where MR = MC.

At the minimum of the long-run average total cost curve.

None of the Answers are Correct.

At a price on the long-run average total cost curve below the point where MR = MC.

Where P = MR = MC.

Which of the following is a barrier to entry in a monopoly market?

Group of answer choices

Economic profit of the monopolist.

Antitrust laws.

Economies of scale.

A rising long-run average total cost curve.

None of the Answers are Correct.

If a monopolist is producing a level of output where MR exceeds MC, then it should

Group of answer choices

Increase its output.

Raise its price.

Lower its output.

None of the Answers are Correct.