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I upload the prompt of the writing assignment below. and here is the multiple choice questions. please for the multiple choice I need the answers only!!
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
1)
Assume the market for organic produce sold at farmers' markets is perfectly competitive. All else equal, as more farmers choose to produce and sell organic produce at farmers' markets, what is likely to happen to the equilibrium price of the produce and profits of the organic farmers in the long run?
1)
_______
A)
The equilibrium price is likely to increase and profits are likely to increase.
B)
The equilibrium price is likely to increase and profits are likely to remain unchanged.
C)
The equilibrium price is likely to decrease and profits are likely to decrease.
D)
The equilibrium price is likely to remain unchanged and profits are likely to increase.
2)
Which of the following is not a characteristic of a perfectly competitive market structure?
2)
_______
A)
There are no restrictions to entry by new firms.
B)
There are a very large number of firms that are small compared to the market.
C)
All firms sell identical products.
D)
There are restrictions on exit of firms.
3)
Perfect competition is characterized by all of the following except
3)
_______
A)
sellers are price takers.
B)
a horizontal demand curve for individual sellers.
C)
heavy advertising by individual sellers.
D)
homogeneous products.
4)
Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21. Which of the following will happen?
4)
_______
A)
The firm's revenue will increase.
B)
The firm will not sell any output.
C)
The firm's profits will increase.
D)
The firm will sell more output than its competitors.
5)
Which of the following is the best example of a perfectly competitive firm?
5)
_______
A)
the United Parcel Service (UPS)
B)
the Ford Motor Company
C)
a corn farmer in Illinois
D)
a Taco Bell restaurant
Table 12-1
Quantity |
Total Cost (dollars) |
Variable Cost (dollars) |
0 |
$1,000 |
$0 |
100 |
1,360 |
360 |
200 |
1,560 |
560 |
300 |
1,960 |
960 |
400 |
2,760 |
1,760 |
500 |
4,000 |
3,000 |
600 |
5,800 |
4,800 |
Table 12-1 shows the short-run cost data of a perfectly competitive firm that produces plastic camera cases. Assume that output can only be increased in batches of 100 units.
6)
Refer to Table 12-1. What is the fixed cost of production?
6)
_______
A)
$0
B)
$500
C)
$1,000
D)
It cannot be determined.
7)
Refer to Table 12-1. If the market price of each camera case is $8, what is the profit-maximizing quantity?
7)
_______
A)
300 units
B)
400 units
C)
500 units
D)
600 units
8)
Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total revenue?
8)
_______
A)
$2,400
B)
$3,200
C)
$4000
D)
$4,800
9)
Refer to Table 12-1. If the market price of each camera case is $8 and the firm maximizes profit, what is the amount of the firm's profit or loss?
9)
_______
A)
$0 (it breaks even)
B)
loss of $1,000
C)
profit of $440
D)
loss of $440
10)
Refer to Table 12-1. Suppose the fixed cost of production rises by $500 and the price per unit is still $8. What happens to the firm's profit-maximizing output level?
10)
______
A)
The firm will shut down.
B)
It will remain the same.
C)
It must fall.
D)
It must rise to offset the increased cost.
11)
Refer to Table 12-1. The firm will not produce in the short run if the output price falls below
11)
______
A)
$8.
B)
$4.
C)
$3.20.
D)
$2.80.
12)
If the market price is $25, the average revenue of selling five units is
12)
______
A)
$5.
B)
$12.50.
C)
$25.
D)
$125.
Figure 12-1
13)
Refer to Figure 12-1. If the firm is producing 700 units
13)
______
A)
it is making a loss.
B)
it should cut back its output to maximize profit.
C)
it is making a profit.
D)
it should increase its output to maximize profit.
14)
Refer to Figure 12-1. If the firm is producing 700 units, what is the amount of its profit or loss?
14)
______
A)
profit equivalent to the area A
B)
loss of $280
C)
loss equivalent to the area A
D)
There is insufficient information to answer the question.
15)
Refer to Figure 12-3. If the firm is charging a price of $12 per unit
15)
______
A)
it is making a profit.
B)
it is selling 700 units.
C)
it breaks even.
D)
it is not selling any output.
16)
A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The price of each good is $10. Calculate the firm's short-run profit or loss.
16)
______
A)
profit of $30,000
B)
profit of $6,000
C)
loss of $6,000
D)
There is insufficient information to answer the question.
17)
If, for the last unit of a good produced by a perfectly competitive firm, MR > MC, then in producing it, the firm
17)
______
A)
is maximizing marginal profit.
B)
has minimized its losses.
C)
added more to total costs than it added to total revenue.
D)
added more to total revenue than it added to total cost.
18)
Marginal revenue is
18)
______
A)
the change in profit divided by the change in the quantity of output.
B)
the change in total revenue divided by the change in total cost.
C)
the change in total revenue divided by the change in the quantity of output.
D)
total revenue divided by the total quantity of output.
Table 12-2
Apples (pounds) |
Market Price per Pound |
Total Revenue (TR) |
Average Revenue (AR) |
Marginal Revenue (MR) |
0 |
$3 |
$0 |
----- |
----- |
100 |
||||
150 |
||||
200 |
||||
250 |
||||
300 |
||||
350 |
||||
400 |
Table 12-2 lists the various pounds (lbs.) of apples that Margie Stattler can sell. Assume that Margie operates in a perfectly competitive market.
19)
Refer to Table 12-2. What is Margie's total revenue if she sells 250 pounds of apples?
19)
______
A)
$250
B)
$500
C)
$750
D)
There is not enough information in the table to determine Margie's total revenue.