Economics Chapter 14 review
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| show | a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker.
🗑
|
||||
| Definition of average revenue: | show 🗑
|
||||
| Definition of marginal revenue: | show 🗑
|
||||
| Definition of sunk cost: | show 🗑
|
||||
| A firm operating in a perfectly competitive market earns zero economic profit in the long run but remains in business because the firm's revenues cover the business owners' opportunity costs. True or false? | show 🗑
|
||||
| A profit-maximizing firm in a competitive market will increase production when average revenue exceeds marginal cost. True or false? | show 🗑
|
||||
| show | FALSE
🗑
|
||||
| Suppose a firm operating in a competitive market has the following cost curves: P1, P2, P3, P4. Firms will shut down in the short run if the market price | show 🗑
|
||||
| A firm operating in a perfectly competitive industry will shut down in the short run if its economic profits fall to zero because it is likely to be earning negative accounting profits. True or false? | show 🗑
|
||||
| show | some firms will exit from the market.
🗑
|
||||
| Mrs. Smith operates a business in a competitive market. The current market price is $8.50. At her profit-maximizing level of production, the average variable cost is $8, and the average total cost is $8.25. Mrs. Smith should | show 🗑
|
||||
| show | price takers.
🗑
|
||||
| show | TRUE
🗑
|
||||
| A firm is currently producing 100 units/day. The manager reports that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $5. The firm should continue to produce 100 units in order to maximize its profits. True or false? | show 🗑
|
||||
| show | choose the price at which it sells its milk.
🗑
|
||||
| The entry of new firms into a competitive market will | show 🗑
|
||||
| show | FALSE
🗑
|
||||
| show | FALSE
🗑
|
||||
| show | $4,000
🗑
|
||||
| show | marginal revenue equals $4 and Total revenue equals $1,600
🗑
|
||||
| show | FALSE
🗑
|
||||
| Demand curve is $4 each across the board, quantity can change. A firm operating in a competitive market maximizes total revenue by producing | show 🗑
|
||||
| show | less than average variable cost.
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
debra473