Title: Micro Econ Ch. 8 Flashcards - Questions and Answers | Quizlet
Headings: Micro Econ Ch. 8
Micro Econ Ch. 8
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Key concepts:
Terms in this set (15)
THIS SET IS OFTEN IN FOLDERS WITH...
Micro Econ Ch. 6
Micro Econ Ch. 7
Chapter 23: Pure Competition

Content: Oligopoly
Pure monopoly
Monopolistic competition
Pure competition
D
A patent gives a firm the power to charge a price that: Is below equilibrium
Is higher than marginal cost
Increases the consumer surplus
Results in overproduction of a product
B
Which of the following is a reason why individual firms under pure competition would not find it gainful to advertise their product? Firms produce a homogeneous product
The quantity of the product demanded is very large
Firms do not make long-run profits
The market demand curve cannot be increased
A
A purely competitive firm does not try to sell more of its product by lowering its price below the market price because: It can sell all it wants to at the market price
Its competitors would not permit it
This would be considered unethical price chiseling
Its demand curve is inelastic, so total revenue will decline
A
A purely competitive firm currently producing 20 units of output earns marginal revenues of $12 from each extra unit of output it sells. If it sells 30 units, then its total revenues would be: $240
$360
$120
Indeterminate based on the given information
B
Resources are efficiently allocated when production occurs at that output level where price: Equals marginal cost
Equals marginal revenue
Is equal to average total cost
Is greatest over average cost
A
THIS SET IS OFTEN IN FOLDERS WITH...
Micro Econ Ch. 6
13 terms
tsamples
Micro Econ Ch. 7
14 terms
tsamples
Chapter 23: Pure Competition
40 terms
bluesalami23
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