Question 1

In a perfectly competitive market,the price faced by a firm is equal to its

Accepted Answer

A)  average variable cost.
B)  marginal revenue and average revenue.
C)  total cost.
D)  average revenue.E) All of the above
F) C) and D)

Question 2

Sometimes an old company in an industry can build a large plant that has lower cost per unit than a potential entrant (newcomer) can duplicate.This is an example of a market

Accepted Answer

A)  weakness based on cost.
B)  power based on scale economies.
C)  power based on specific assets.
D)  weakness based on reputation deficiency.E) All of the above
F) A) and C)

Question 3

Which of the following is the most important factor influencing the decision of a firm to enter a new market?

Accepted Answer

A)  The effect of the firm's entry on product prices
B)  The effect of the firm's entry on the interest rate
C)  The prevailing tax rate
D)  The type of government in powerE) All of the above
F) B) and D)

Question 4

Refer to Figure 6.1.The monopolist earns a profit equal to

Accepted Answer

A)  $330.
B)  $550.
C)  $300.
D)  $220.E) B) and C)
F) A) and B)

Question 5

The market for microcomputers (PCs) is fairly competitive and the products are somewhat homogeneous.Over time,new firms have entered the market to make profit on new configurations of the microcomputer,and profits

Accepted Answer

A)  have risen dramatically.
B)  have stayed the same for most firms.
C)  have become razor thin for many producers.
D)  have not influenced the decisions of the firmsE) None of the above
F) A) and B)

Exam 6: Market Structure

Which of the following is the most important factor influencing the decision of a firm to enter a new market?

Correct Answer
verified

The market for microcomputers (PCs) is fairly competitive and the products are somewhat homogeneous.Over time,new firms have entered the market to make profit on new configurations of the microcomputer,and profits

Correct Answer
verified

In a perfectly competitive market,the price faced by a firm is equal to its

Correct Answer
verified

Refer to Figure 6.1.The monopolist earns a profit equal to

Correct Answer
verified

Sometimes an old company in an industry can build a large plant that has lower cost per unit than a potential entrant (newcomer) can duplicate.This is an example of a market

Correct Answer
verified

Exam 6: Market Structure

Which of the following is the most important factor influencing the decision of a firm to enter a new market?

Correct AnswerverifiedShow Answer

The market for microcomputers (PCs) is fairly competitive and the products are somewhat homogeneous.Over time,new firms have entered the market to make profit on new configurations of the microcomputer,and profits

Correct AnswerverifiedShow Answer

In a perfectly competitive market,the price faced by a firm is equal to its

Correct AnswerverifiedShow Answer

Refer to Figure 6.1.The monopolist earns a profit equal to

Correct AnswerverifiedShow Answer

Sometimes an old company in an industry can build a large plant that has lower cost per unit than a potential entrant (newcomer) can duplicate.This is an example of a market

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified