Question

1. For a perfectly competitive firm in the short run, the ____________ price is at minimum average variable cost and the break-even price is at minimum ________ cost.   

a. Shut-down: Marginal

b. Shut-down: Average

c. Operating: Average

d. Operating: Marginal

2. The short-run supply curve for a perfectly competitive firm is a _______ line at zero quantity if the price is below minimum average variable cost but is the marginal cost if the price is at or above minimum average variable cost. As a result, the short-run market supply curve is ____________.

a. Horizontal: Downward-sloping

b. Vertical: Upward-sloping

c. Vertical: Downward-sloping

d. Horizontal: Upward-sloping

3. The difference between short-run and long run in microeconomics is whether there is a ________ cost or not. The ______ inputs are inputs whose quantities do change over the quantity of output produced.

a. Variable: Fixed

b. Fixed: Fixed

c. Fixed: Variable

d. Variable: Variable

4. Which of the following is not likely to be a perfectly competitive market?

a. Software market

b. Stock market

c. Market for agricultural products

d. currency market

5. Alex used to work as a dentist in a dental office with a monthly income of $5,000. He now wants to run his own dental office. He hires two dentists with each dentist’s monthly salary of $4,000 and pays $2,000 for dental equipment. He pays salaries of two dentists and dental equipment worth $10,000 from his savings account with a monthly interest rate of 1%. He could have rented out dental office at a monthly rent of $1,000. Alex’s monthly economic cost is $__________ and his accounting cost is $___________.

Group of answer choices

a. 6,100: 16,100

b. 10,000: 6,100

c. 6,100: 10,000

d. 16,100: 10,000

6. A monopolist makes a production decision where ______ is equal to MC and makes a pricing decision on the demand curve at a profit-maximizing quantity. If a monopolist has a ______ in the short run, it will leave the market in the long run.

Group of answer choices

a. P: Break-even

b. P: Loss

c. MR: Loss

d. MR: Profit

7. In a unit elastic demand, MR is equal to _______ and the price effect is equal to _________ effect in absolute value.

a. -1: Total

b. -1: Output

c. 0: Total

d. 0: Output

Answer 1

Note: I am solving first four questions. Kindly upload the remaining questions as separate question