Question 11 If marketprice is greater than or equal to the minimum of AVC (average variable cost)but below the minimum of ATC (average total cost), thenA) revenueis lower than variable costs.B) profit...

1 answer below »






Question 11






If market
price is greater than or equal to the minimum of AVC (average variable cost)
but below the minimum of ATC (average total cost), then






A) revenue
is lower than variable costs.






B) profit is
positive and so the firm will operate.






C) the firm
will shut down.






D) the firm
will operate because its loss is less than if it shuts down.
















Question 25






A firm's
short-run supply curve is the portion of the marginal cost (MC) curve that lies
……….






A) above the
positive total revenue point






B) above the
break-even point






C) above the
shut-down point






D) below the
break-even point






E) below the
shut-down point
















Question 39






As discussed
in class, let's assume that a firm sells its product in two different markets -
A and B. If the price elasticities in these markets are different, such as -1.2
and -2, respectively, you would think that charging the same price of $5. for
example. in both markets ……………. maximize the firm's profit because the marginal
revenue in market A (MRa) will be………the marginal revenue in market B (MRg).






will not:
less than






will not:
greater than






will: the
same as


























Question 41






According to
Professor Choi, the study of ………….. is the least defined and established in the
economics,






a) perfect
competition






b) oligopoly






C) a
monopoly






D) duopoly






E) all of
the above





















Question 49






If the own price
elasticity is -4, the Lerner Index is …………. And the larger the Lerner Index is,
the






…………… the
market power.






a) -0.25;
larger






b) 0.25:
smaller






C) 0.25;
larger






D) -0.25;
smaller






E) 4; larger









MCQ Question 11 If market price is greater than or equal to the minimum of AVC (average variable cost) but below the minimum of ATC (average total cost), then A) revenue is lower than variable costs. B) profit is positive and so the firm will operate. C) the firm will shut down. D) the firm will operate because its loss is less than if it shuts down. Question 25 A firm's short-run supply curve is the portion of the marginal cost (MC) curve that lies ………. A) above the positive total revenue point B) above the break-even point C) above the shut-down point D) below the break-even point E) below the shut-down point Question 39 As discussed in class, let's assume that a firm sells its product in two different markets - A and B. If the price elasticities in these markets are different, such as -1.2 and -2, respectively, you would think that charging the same price of $5. for example. in both markets ……………. maximize the firm's profit because the marginal revenue in market A (MRa) will be………the marginal revenue in market B (MRg). will not: less than will not: greater than will: the same as Question 41 According to Professor Choi, the study of ………….. is the least defined and established in the economics, a) perfect competition b) oligopoly C) a monopoly D) duopoly E) all of the above Question 49 If the own price elasticity is -4, the Lerner Index is …………. And the larger the Lerner Index is, the …………… the market power. a) -0.25; larger b) 0.25: smaller C) 0.25; larger D) -0.25; smaller E) 4; larger
Answered Same DayNov 24, 2022

Answer To: Question 11 If marketprice is greater than or equal to the minimum of AVC (average variable cost)but...

Komalavalli answered on Nov 25 2022
9 Votes
MCQ
Question 11:
c) The firm will shut down
Question 25:
C) above the shut-down point
Question
39:
a)will not: less than
Question 41:
a)Perfect competition
Question 49:
c) 0.25,Larger
MCQ

Question 11:

c) The firm will shut down

Question 25:

C) above the shut
-
down...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here