profit-maximizing, externalities, approximately
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1. Government intervention may be required to correct market outcomes because of:
a) externalities
b) market power
c) public goods
d) all of the above
2. The optimal mix of output may not be produced by an economy because of the existence of:
a) monopolies
b) externalities
c) public goods
d) all of the above
3. Refer to the data in figure 7.2 Total fixed costs for this firm are approximately:
a) $50
b) $100
c) $600
d) $200
e) $60
4. Refer to data in figure 7.2 the profit-maximizing output for this firm is:
a) 100 units
b) above 290 units
c) 290 units
d) 200 units
5. Refer to figure 7.3 for a perfectly competitive firm. If the market price is $15:
a) the firm should produce 35 units
b) the firm will have normal profits
c) economic profits will be zero
d) all of the above
6. Refer to figure 7.3 for a perfectly competitive firm. If the market price is $23:
a) the firm should produce 40 units
b) the firm will have above normal profits
c) economic profits are greater than zero
d) all of the above
7. Refer to figure 7.3 for a perfectly competitive firm. If the market price is $10:
a) the firm should produce 25 units
b) the firm will continue to operate in the short run
c) an economic loss will occur
d) all of the above
8. Refer to figure 7.3 for a perfectly competitive firm. The firm should shutdown at any price below:
a) $4
b) $10
c) $15
d) $23
e) $5
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1. Government intervention may be required to correct market outcomes because of:
a) externalities b) market power c) public goods d) all of the above
d) all of the above. Each of the three are reasons why government intervention is required.
2. the optimal mix of output may not be produced by an economy because of the existence of:
a) monopolies b) externalities c) public goods d) all of the above
d) all of the above. Each of these is a reason why the optimal mix may not be produced by the economy.
3. Refer to the data in figure 7.2 Total fixed costs for this firm are approximately:
a) $50
b) $100
c) $600
d) $200
e) $60
e) $60 This is the point where the total cost curve ...
Purchase this Solution
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