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Section 1 individual seller's seller's producer surplus on a unit of a good is 1) An individual greater than the buyer's consumer surplus on that unit zero in perfect competition zero in monopoly an example of a side payment the difference between the price the seller receives and the cost of producing that unit.
Your Answer : zero in perfect competition Your Marks : 0 out of 1 2) If a perfectly competitive market is in equilibrium and then market demand increases, which
of the following would happen? producer and consumer surplus would remain unchanged producer surplus would definitely increase and consumer surplus may increase or decrease consumer surplus would definitely increase and producer surplus may increase or decrease consumer surplus would definitely decrease and producer surplus may increase or decrease producer surplus would definitely decrease and consumer surplus may increase or decrease Your producer surplus would definitely increase and consumer surplus may increase or Answer : decrease Your Marks 1 out of 1 :
3)
If the monopolistically competitive firm in Figure 11-8 is typical of its competitors, the industry will likely experience exit of existing firms exit of all firms no change in the long run https://ivle.nus.edu.sg/v1/Assessm ent/Student/result_details.aspx?assessmentid=866b6be9-7610-4f08-b25b-ac44358dd8d1&sessionid=7da0f5cf-fd49-444d-9a2…
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constant returns to scale entry of new firms Your Answer : no change in the long run Your Marks : 1 out of 1
4)
Figure 11-2 illustrates a monopolistically competitive firm. In order to maximize profit, or
minimize loss, the firm will produce 5 units of output and charge $650 produce approximately 7.5 units of output and charge nearly $600 produce approximately 12.5 units of output and charge approximately $425 close down produce approximately 10 units of output and charge approximately $500 Your Answer : produce approximately 10 units of output and charge approximately $500 Your Marks : 1 out of 1 5) In the long run, equilibrium for a monopolistically competitive firm resembles equilibrium for
a monopoly in the sense that marginal cost exceeds marginal revenue price equals marginal cost average revenue exceeds price price exceeds marginal cost https://ivle.nus.edu.sg/v1/Assessm ent/Student/result_details.aspx?assessmentid=866b6be9-7610-4f08-b25b-ac44358dd8d1&sessionid=7da0f5cf-fd49-444d-9a2…
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both types of firms are able to earn economic profits Your Answer : price exceeds marginal cost Your Marks : 1 out of 1 6) Suppose that a perfectly competitive market is in equilibrium. Then,
the equilibrium quantity provides the maximum possible benefit to buyers and sellers combined an additional unit, if produced, would produce a benefit that exceeds its cost of production total (producer + consumer) surplus is equal to price x quantity. an additional unit could be produced at a cost to some producer that is less than the benefit to some consumer the equilibrium quantity provides the maximum possible benefit to buyers Your the equilibrium quantity provides the maximum possible benefit to buyers and Answer : sellers combined Your Marks 1 out of 1 : 7) Monopolistic competition exists when there is one large firm in an otherwise perfectly
competitive market. False True Your Answer : False Your Marks : 1 out of 1 8) Consider a market with a price ceiling. If the price ceiling is raised which of the following
would happen? The consumer surplus would decrease, the producer surplus would increase and the dead weight loss would decrease The consumer surplus, the producer surplus and the dead weight loss would all increase The consumer surplus would increase, the producer surplus would decrease and the dead weight loss would increase The consumer surplus would increase, the producer surplus would decrease and the dead weight loss would decrease The consumer surplus, the producer surplus and the dead weight loss would all decrease
Your The consumer surplus would decrease, the producer surplus would increase and the Answer : dead weight loss would decrease Your 1 out of 1 Marks : 9) The supply curve indicates
the value of each unit of a good or service how much people are willing to pay for a good or service the maximum price some seller can expect to receive from supplying each unit of a good or service the price that will be charged for each unit of a good or service the minimum price some seller must receive in order to supply each unit of a good or service Your the minimum price some seller must receive in order to supply each unit of a good Answer : or service Your Marks 1 out of 1 :
10)
The firm in Figure 11-2 is monopolistically competitive. The diagram illustrates a long-run economic profit short-run economic profit shut-down case https://ivle.nus.edu.sg/v1/Assessm ent/Student/result_details.aspx?assessmentid=866b6be9-7610-4f08-b25b-ac44358dd8d1&sessionid=7da0f5cf-fd49-444d-9a2…
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short-run economic loss long-run economic loss Your Answer : short-run economic profit Your Marks : 1 out of 1
