FREE AND STUDY GAMES ABOUT ECON 202 EXAM

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FREE AND STUDY GAMES ABOUT ECON 202 EXAM

QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -100 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: Which idea is inconsistent with pure competition?

Answer:

product differentiation

Question 2: Economic cost can best be defined as

Answer:

a payment that must be made to obtain and retain the services of a resource.Question 3: Suppose that as the price of Y falls from $2.00 to $1.90, the quantity of Y demanded increases from 110 to 118. Then the absolute value of the price elasticity (using the midpoint formula) is approximately

Answer:

1.37.

Question 4: The representative firm in a purely competitive industry

Answer:

will earn zero economic profit in the long run.

Question 5: In the short run, a purely competitive seller will shut down if

Answer:

price is less than average variable cost at all outputs.

Question 6: If at the MC = MR output, AVC exceeds price,

Answer:

some firms should shut down in the short run.Question 7: Assume a purely competitive decreasing-cost industrytially in long-run equilibrium, producing 6 million units at a marice of $25.00. Suppose that an in. After all economic adjustmencompleted, which output and price combination is most likely to occur?

Answer:

• units at a price of $23.50.

Question 8: The primary force encouraging the entry of new firms into a purely competitive industry is

Answer:

economic profits earned by firms already in the industry.Question 9: The graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, assuming no changes in the given information,

Answer:

new firms will be attracted into the industry.Question 10: Which plant size would produce at the least cost for the 3,000-4,000 range of output?

Answer:

ATC-2 Question 11: The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.

Answer:

downsloping; perfectly elastic

Question 12: Suppose that as the price of Y falls from $12 to $10, the quantity of Y demanded increases from 500 to 600. Then the absolute value of the price elasticity (using the midpoint formula) is approximately

Answer:

1.Question 13: Suppose Aiyanna's Pizzeria currently faces a linear demand curve and is charging

Answer:

demand will become less price elastic.Question 14: Suppose that Joe sells pork in a purely competitive market. The market price of pork is $4 per pound. Joe's marginal revenue from selling the 21st pound of pork would be

Answer:

$4.

Question 15: A perfectly inelastic demand schedule

Answer:

can be represented by a line parallel to the vertical axis.

Question 16: Creamy Crisp's implicit costs, including a normal profit, are

Answer:

$141,000.

Question 17: Refer to the diagram and assume a single good. If the price of the good decreases from $6.30 to $5.70, consumer expenditure would

Answer:

decrease if demand were D2 only.

Question 18: Implicit and explicit costs are different in that

Answer:

the former refer to nonexpenditure costs and the latter to monetary payments.Question 19: If firms are losing money in a purely competitive industry, then the long-run adjustments in this situation will cause the market supply to

Answer:

decrease, and consequently the representative firm's profits will increase.

Question 20: If the demand for bacon is relatively elastic, a 10 percent decline in the price of bacon will

Answer:

increase the amount demanded by more than 10 percent.

Question 21: The price elasticity of demand coefficient measures

Answer:

buyer responsiveness to price changes.

Question 22: In the short run, total output in an industry

Answer:

can vary as the result of using a fixed amount of plant and equipment more or less intensively.Question 23: Price is taken to be a "given" by an individual firm selling in a purely competitive market because

Answer:

each seller supplies a negligible fraction of the total market.

Question 24: Production costs to an economist

Answer:

reflect opportunity costs.Question 25: Which market model assumes the least number of firms in an industry?

Answer:

pure monopoly

Question 26: Creamy Crisp's implicit costs, including a normal profit, are

Answer:

$136,000.

Question 27: The basic difference between the short run and the long run is that

Answer:

at least one resource is fixed in the short run, while all resources are variable in the long run.