Recall the economic distinction between the short

Question 1 Recall the economic distinction between the short run and the long run. If a competitive firm or a monopoly is operating in the short run then:it will not be able to cut its rate of output to zerobarriers to entry exist that prevent new firms from entering the industryit will not be able to change the level of any of the inputs used in the production processit will not be able to change the level of all of the inputs used in the production processFlag this QuestionQuestion 2 Consider a good that is produced and traded in a perfectly competitive market. The market demand curve for the good is ______, while the demand curve for a single competitive firms good ______.downward sloping, perfectly elasticdownward sloping, perfectly inelasticperfectly elastic, downward slopingperfectly inelastic, downward slopingFlag this QuestionQuestion 3 For a purely competitive firm _______________; and for a uniform-price monopolist _______________ = MR = AR; P = AR < MRP = MR = AR; P = AR > MRP = MR = AR; P = MR < ARP = AR > MR; P > MR = ARP > MR = AR; P = AR > MRFlag this QuestionQuestion 4 If a firm produces at a break-even point, then:i. average revenue is equal to average total costii. total revenue is equal to total costiii. average revenue is equal to average variable costiv. total revenue is equal to total variable costiiiiiiivi and iiiii and ivFlag this QuestionQuestion 5 Suppose a perfectly competitive firm produces a level output such that P < ATC. From this information it may be concluded that:i. it will incur a lossii. its profits will be zeroiii. it will incur a profitiv. it should shut down and only pay its fixed costsiiiiiiivi and ivii and ivFlag this QuestionQuestion 6 The total revenue generated by a perfectly competitive firm:i. increases by a constant amount as the quantity of output that it sells increasesii. increases initially, reaches a maximum, and then decreases as the quantity of output that it sells increasesiii. appears graphically as an upward sloping straight line from the origin with a slope that is equal to the market price of the goodiiiiiii and iiiii and iiiFlag this QuestionQuestion 7 In contrast to the demand curve that a perfectly competitive confronts, the demand curve that a monopolist confronts is:less elastic at all pricesmore elastic at all pricesperfectly elasticperfectly inelasticthe same as the monopolists marginal revenue curve if the firm practices uniform pricingFlag this QuestionQuestion 8 If a perfectly competitive firm or a monopoly is maximizing total profit, then it will be:maximizing the difference between total revenue and total costmaximizing the difference between average revenue and average total costminimizing total costmaximizing total revenueFlag this QuestionQuestion 9 In order for a firm to determine how much it would save by reducing production by one unit of output per-period (e.g., hourly), it will evaluate its:marginal product functionmarginal cost functionaverage product functionaverage total cost functionaverage variable cost functionFlag this QuestionQuestion 10 Which of the following is correct regarding patents, economies of scale, and the exclusive ownership of inputs used in the production process?all are barriers to market entryall explain why a monopolists demand and marginal revenue curves are identicalall explain why the law of diminishing marginal product holds in long-run production processesall must be present before a monopolist can successfully employ discriminatory pricing strategiesFlag this QuestionQuestion 11 Of the two types of firms discussed in class and chapters 12 and 15, which will maximize total profit or minimize total operating losses by producing a level of output such that MR = MC?monopoliesperfectly competitive firmsmonopolies and perfectly competitive firmsnone of the aboveFlag this QuestionQuestion 12 A monopoly would increase is total profits by decreasing output in which of the following cases:if it were producing a level of output such that MC = MRif it were producing a level of output such that MC < MRif it were producing a level of output such that MC > MRnone of the aboveFlag this QuestionQuestion 13 Suppose a firm is producing a level of output such that marginal revenue is equal to marginal cost. The firm is selling its output at a price of $15 per unit and is incurring average variable costs of $11 per unit and average total costs of $13 per unit. Given this information, it may be concluded that the firm:is operating at maximum total profitis operating at a loss that is less than the loss incurred by shutting downis operating at a profit that could be increased by producing more outputis operating at a loss that could be reduced by shutting downFlag this QuestionQuestion 14 A perfectly competitive firms average fixed cost function is AFC = 20/Q, its average variable cost function is AVC = 2 + 0.2Q, and it marginal cost function is MC = 2 + 0.4Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the market price of the good is P = $10, then the firm will:produce 5 units of output and suffer a loss of $0produce 5 units of output and suffer a loss of $30produce 10 units of output and suffer a loss of $10produce 10 units of output and suffer a loss of $40produce 20 units of output and earn a profit of $60produce 20 units of output and earn a profit of $100Flag this QuestionQuestion 15 Consider a monopoly whose total cost function is TC = 10 + 5Q + 2.5Q2 and whose marginal cost function is MC = 5 + 5Q. The demand function for the firms good is P = 115 – 0.25Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then the firm will:produce 20 units of output, charge a price of $110, and earn a profit of $1090produce 20 units of output, charge a price of $110, and earn a profit of $2200produce 56 units of output, charge a price of $71, and earn a profit of $2252produce 56 units of output, charge a price of $71, and earn a profit of $3976produce 110 units of output, charge a price of $20, and earn a profit of $1090produce 110 units of output, charge a price of $20, and earn a profit of $2200