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MBA 505 Chapter 8 Quiz
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1. The demand curve of an individual firm in a perfectly competitive
market structure is always
a. perfectly inelastic
b. unit elastic
c. elastic
d. perfectly elastic
e. downward-sloping
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2. Which of the following are given by the demand curve facing
a perfectly competitive firm?
a. equilibrium price, marginal revenue, and average revenue
b. Marginal revenue and marginal cost
c. Marginal revenue, average total cost, and total revenue
d. Marginal cost and average variable cost
e. Average total cost, marginal cost, and equilibrium price
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3. Perfect competition
a. requires perfect information.
b. relies on extensive advertising.
c. is identical to monopolistic competition.
d. relies on product differentiation.
e. is characterized by only a few sellers.
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4. If a firm is a price taker
a. the government dictates the price.
b. the firm is such a small part of the market it cannot influence
the price.
c. only the firm can determine the price.
d. the firm must advertise in order to sell more of its product.
e. the only real decision that the firm makes is whether or not
to advertise.
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5. To maximize profits in the short run, a perfectly competitive firm
will produce that output at which
a. MR equals demand.
b. P = MR.
c. P = MC.
d. MR = ATC.
e. TR = TC.
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6. In which of the following firms is the demand curve facing the firm
the same as its marginal-revenue curve?
a. A monopoly
b. An oligopoly
c. A monopolistically competitive firm
d. A perfectly competitive firm
e. A cartel
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7. In a perfectly competitive market structure, a firm's marginal-revenue
curve is identical to the firm's
a. total-fixed-cost curve.
b. marginal-cost curve.
c. demand curve.
a. average-total-cost curve.
e. supply curve.
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Answers
1d, 2a, 3a, 4b, 5c, 6d, 7c.
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