Saved

Following the three rules for profit maximization in a perfectly competitive market, if the marginal revenue is equal to the marginal cost then the firm should do what?

Question 1 options:

a)	decease output

b)	hold output steady

c)	close the firm

d)	increase output

Question 2(4 points)

Saved

_____________________ refers to the ability of a firm to charge different consumers different prices for the same (or very similar) goods and services.

Question 2 options:

a)	Monopoly power

b)	Market power

c)	Price discrimination

d)	Market concentration

Question 3(4 points)

Saved

In the long-run in a perfectly competitive market and if a firm's total revenue is greater than the total cost, then the firm should exit the market.

Question 3 options:

	a) True
	b) False

Question 4(4 points)

Saved

The intersection of the marginal cost and average total cost is also the ____________ point of the average total cost.

Question 4 options:

a)	the average

b)

minimum

c)	marginal cost and average total cost never intersect

d)

maximum

Question 5(4 points)

Saved

In terms of market power, a very small Herfindahl-Hirschman Index (HHI) value equal to 0.01 or lower means what type of market exits?

Question 5 options:

a)	Perfectly competitive

b)	Monopolistic competition

c)

Monopoly

d)

Oligopoly

Question 6(4 points)

Saved

In an oligopoly, there are very low barriers for other firms to enter the market.

Question 6 options:

	a) True
	b) False

Question 7(4 points)

Saved

What are some examples of fixed costs (AKA overhead expenses)?

Question 7 options:

a)	Property taxes

b)	Mortgage on property

c)	Payments on machinery loans

d)	Variable costs associated with utilities

e)	Seed used in farming

Question 8(4 points)

_______________ is a function of the number of producers (or firms) and each firm's relative share of the total production.

Question 8 options:

a)	Diminishing marginal utility

b)	Marginal benefit

c)	Market saturation

d)	Market concentration

Question 9(4 points)

Similar to other industry sectors, the agriculture supply chain is really just one supply chain. It is note made up of a wide range of smaller supply chains.

Question 9 options:

	a) True
	b) False

Question 10(4 points)

The fact that average fixed costs continually decline with increasing output helps explain what concept?

Question 10 options:

a)	Economies of scope

b)	Economies of scale

c)	Marginal change

d)	Diminishing marginal returns

Question 11(4 points)

According to the USDA, one effect from increased market concentration in terms of farms is that the average farm size has gotten larger over the last 100 years.

Question 11 options:

	a) True
	b) False

Question 12(4 points)

In the most general sense, what is the goal of the firm?

Question 12 options:

a)	Establish monopoly power

b)	supply goods and services to consumers

c)	Maximize profits for owners and/or shareholders

d)	Be sound environmentally

Question 13(4 points)

What are some real world examples of supply shifters (Select All that Apply)?

Question 13 options:

a)	New corn seed innovations

b)	Higher concentration in the market

c)	Belief the Federal Reserve will lower interest rates

d)	Loss in annual profit at firm

e)	Reduced demand for milk

f)	Increase in seed prices

Question 14(4 points)

Whether a supply chain member, consumer, or employee, in general, more competition in the market is preferred to less competition.

Question 14 options:

	a) True
	b) False

Question 15(4 points)

If the price of a good is $4.00 and the quality sold of that good is 100 units, what is the total revenue?

Question 15 options:

a)

$4

b)

$400

c)

$200

d)	Cannot tell from information provided

Question 16(4 points)

In a perfectly competitive market and when a firm is at the profit-maximizing level of output, the marginal revenue is greater than the marginal cost.

Question 16 options:

	a) True
	b) False

Question 17(4 points)

In a market, high concentration means more competition where low concentration means less competition.

Question 17 options:

	a) True
	b) False

Question 18(4 points)

A single and sudden change in demand can have increasing effects across the whole supply chain is referred to as what?

Question 18 options:

a)	Higher concentration

b)	Marginal benefit

c)	An oligopoly

d)	Bullwhip effect

Question 19(4 points)

Saved

What are some examples of big-picture factors that make the agri-food system unique (Select All That Apply)?

Question 19 options:

a)	U.S. historically world leader in exports of farm products

b)	High degree of "asset specificity"

c)	Different regions product different agri-food products

d)	Marginal costs

e)	Tastes and preferences vary throughout the yea

Question 20(4 points)

Until recently (last 5 or so years), what can we say has historically been true about agriculture trade and the U.S.

Question 20 options:

a)	U.S. exported more than imported

b)	U.S. imported more than exported

c)	U.S. exported less than imported

d)	U.S. imports and exports have been identical

Question 21(4 points)

One property that separates a perfectly competitive market from a monopolistic competition is that product differentiation exists in the latter.

Question 21 options:

	a) True
	b) False

Question 22(4 points)

The labor production function figure above shows an example of what concept?

Question 22 options:

a)	Diminishing marginal product

b)

Net gains

c)	Total costs

d)	Firm profitability

Question 23(4 points)

The upward pointing arrow in the figure above points to the effect of COVID on Food Away From Home. What would you expect to see in a supply and demand curve, based on this figure?

Question 23 options:

a)	Shift decreasing supply

b)	Shift increasing supply

c)	Shift decreasing demand

d)	Shift increasing demand

e)	Both A & C

f)	Both B & D

g)	None of these above

Question 24(4 points)

In the long-term, the broader supply curve of agricultural goods is steeper (more vertical) compared to the short-term supply curve due in part to the uniqueness of the agri-food sector.

Question 24 options:

	a) True
	b) False

Question 25(4 points)

In agriculture, what is the implication of narrow profit margins?

Question 25 options:

a)	a high volume of output is needed to justify the creation of new physical facility

b)	only a low volume of output is needed to justify the creation of new physical facility

c)	firms must try to establish monopolies in the market

d)	firms will have to exit if there is too much competition

Saved

Following the three rules for profit maximization in a perfectly competitive market, if the marginal revenue is equal to the marginal cost then the firm should do what?

Question 1 options:

a)	decease output

b)	hold output steady

c)	close the firm

d)	increase output

Question 2(4 points)

Saved

_____________________ refers to the ability of a firm to charge different consumers different prices for the same (or very similar) goods and services.

Question 2 options:

a)	Monopoly power

b)	Market power

c)	Price discrimination

d)	Market concentration

Question 3(4 points)

Saved

In the long-run in a perfectly competitive market and if a firm's total revenue is greater than the total cost, then the firm should exit the market.

Question 3 options:

	a) True
	b) False

Question 4(4 points)

Saved

The intersection of the marginal cost and average total cost is also the ____________ point of the average total cost.

Question 4 options:

a)	the average

b)

minimum

c)	marginal cost and average total cost never intersect

d)

maximum

Question 5(4 points)

Saved

In terms of market power, a very small Herfindahl-Hirschman Index (HHI) value equal to 0.01 or lower means what type of market exits?

Question 5 options:

a)	Perfectly competitive

b)	Monopolistic competition

c)

Monopoly

d)

Oligopoly

Question 6(4 points)

Saved

In an oligopoly, there are very low barriers for other firms to enter the market.

Question 6 options:

	a) True
	b) False

Question 7(4 points)

Saved

What are some examples of fixed costs (AKA overhead expenses)?

Question 7 options:

a)	Property taxes

b)	Mortgage on property

c)	Payments on machinery loans

d)	Variable costs associated with utilities

e)	Seed used in farming

Question 8(4 points)

_______________ is a function of the number of producers (or firms) and each firm's relative share of the total production.

Question 8 options:

a)	Diminishing marginal utility

b)	Marginal benefit

c)	Market saturation

d)	Market concentration

Question 9(4 points)

Similar to other industry sectors, the agriculture supply chain is really just one supply chain. It is note made up of a wide range of smaller supply chains.

Question 9 options:

	a) True
	b) False

Question 10(4 points)

The fact that average fixed costs continually decline with increasing output helps explain what concept?

Question 10 options:

a)	Economies of scope

b)	Economies of scale

c)	Marginal change

d)	Diminishing marginal returns

Question 11(4 points)

According to the USDA, one effect from increased market concentration in terms of farms is that the average farm size has gotten larger over the last 100 years.

Question 11 options:

	a) True
	b) False

Question 12(4 points)

In the most general sense, what is the goal of the firm?

Question 12 options:

a)	Establish monopoly power

b)	supply goods and services to consumers

c)	Maximize profits for owners and/or shareholders

d)	Be sound environmentally

Question 13(4 points)

What are some real world examples of supply shifters (Select All that Apply)?

Question 13 options:

a)	New corn seed innovations

b)	Higher concentration in the market

c)	Belief the Federal Reserve will lower interest rates

d)	Loss in annual profit at firm

e)	Reduced demand for milk

f)	Increase in seed prices

Question 14(4 points)

Whether a supply chain member, consumer, or employee, in general, more competition in the market is preferred to less competition.

Question 14 options:

	a) True
	b) False

Question 15(4 points)

If the price of a good is $4.00 and the quality sold of that good is 100 units, what is the total revenue?

Question 15 options:

a)

$4

b)

$400

c)

$200

d)	Cannot tell from information provided

Question 16(4 points)

In a perfectly competitive market and when a firm is at the profit-maximizing level of output, the marginal revenue is greater than the marginal cost.

Question 16 options:

	a) True
	b) False

Question 17(4 points)

In a market, high concentration means more competition where low concentration means less competition.

Question 17 options:

	a) True
	b) False

Question 18(4 points)

A single and sudden change in demand can have increasing effects across the whole supply chain is referred to as what?

Question 18 options:

a)	Higher concentration

b)	Marginal benefit

c)	An oligopoly

d)	Bullwhip effect

Question 19(4 points)

Saved

What are some examples of big-picture factors that make the agri-food system unique (Select All That Apply)?

Question 19 options:

a)	U.S. historically world leader in exports of farm products

b)	High degree of "asset specificity"

c)	Different regions product different agri-food products

d)	Marginal costs

e)	Tastes and preferences vary throughout the yea

Question 20(4 points)

Until recently (last 5 or so years), what can we say has historically been true about agriculture trade and the U.S.

Question 20 options:

a)	U.S. exported more than imported

b)	U.S. imported more than exported

c)	U.S. exported less than imported

d)	U.S. imports and exports have been identical

Question 21(4 points)

One property that separates a perfectly competitive market from a monopolistic competition is that product differentiation exists in the latter.

Question 21 options:

	a) True
	b) False

Question 22(4 points)

The labor production function figure above shows an example of what concept?

Question 22 options:

a)	Diminishing marginal product

b)

Net gains

c)	Total costs

d)	Firm profitability

Question 23(4 points)

The upward pointing arrow in the figure above points to the effect of COVID on Food Away From Home. What would you expect to see in a supply and demand curve, based on this figure?

Question 23 options:

a)	Shift decreasing supply

b)	Shift increasing supply

c)	Shift decreasing demand

d)	Shift increasing demand

e)	Both A & C

f)	Both B & D

g)	None of these above

Question 24(4 points)

In the long-term, the broader supply curve of agricultural goods is steeper (more vertical) compared to the short-term supply curve due in part to the uniqueness of the agri-food sector.

Question 24 options:

	a) True
	b) False

Question 25(4 points)

In agriculture, what is the implication of narrow profit margins?

Question 25 options:

a)	a high volume of output is needed to justify the creation of new physical facility

b)	only a low volume of output is needed to justify the creation of new physical facility

c)	firms must try to establish monopolies in the market

d)	firms will have to exit if there is too much competition