Answer to Question #212015 in Microeconomics for Yanda

Question

13. For a firm in a perfectly competitive market, the price of the good is always

a. equal to marginal revenue.

b. equal to total revenue.

c. greater than average revenue.

d. All of the above are correct.

14. If a firm in a perfectly competitive market triples the number of units of output sold, then total revenue

will

a. more than triple.

b. less than triple.

c. exactly triple.

d. All of the above are potentially true.

15. Because the goods offered for sale in a competitive market are largely the same,

a. there will be few sellers in the market.

b. there will be few buyers in the market.

c. buyers will have market power.

d. sellers will have little reason to charge less than the going market price.

16. Which of the following is NOT a characteristic of a monopoly market?

a. Firms are price takers.

b. Firms have difficulty entering the market.

c. There are many buyers in the market.

d. Goods offered for sale are not the same.

Answer 1

13:

a. equal to marginal revenue.

14:

c. exactly triple.

15:

d. sellers will have little reason to charge less than the going market price

16:

d. Goods offered for sale are not the same.