1101微观经济概念题-英文版

M

1When new firms enter a perfectly competitive market, what will be the likely result?

The short-run market supply curve shifts right.

2

In the long run all a firm’s costs are variable. In this case, what is the exit criterion for a profit

-maximizing firm?

price is less than average total cost.

What type of monopoly are patent and copyright laws major sources of?

government-created monopolies

When a firm has little ability to influence market prices, it is said to be in what kind of a market?

Competitive

In

reference to setting the production level, what do we know about a firm’s cost curves?

By themselves, they do not tell us what decisions the firm will make.

Why does inefficiency arise from a monopoly?

Some buyers will refrain from buying the good, due to the high price.

13

1Which statement best applies to the long run?

All costs can vary.

2Which of the following is an example of explicit costs?

payments made by the firm to others

3Which of the following is an example of implicit costs?

opportunity cost of resources owned by the firm

4

Which statement applies when marginal cost equals average total cost?

Average total cost is at its minimum.

5

What would be subtracted from a firm's revenue to measure economic profit?

opportunity costs

6A firm has $$300 million in revenues and explicit costs of $$100 million. Its owners have invested $$100 million in the

company. This could have been invested at 10 percent per year. What is the firm's economic profit?

$$190 million

7Which of the following is an example of variable cost in the short run?

raw materials, energy costs, and hourly labour

8Which statement best characterizes fixed costs?

They are costs that do not vary with output.

9What is marginal cost?

the change in total cost that comes from a change in output

10Which statement best explains economies of scale?

Average cost declines in the long run

11Because

no

money

flows

out

of

the

business

to

pay

for

opportunity

costs,

they

never

show

up

on

the

financial

statements. Therefore, which of these statements follows?

This must be an economist's analysis of the business.

12As production increases, how does a unit's share of fixed costs change?

It continually decreases as output increases.

13What is average total cost?

total cost divided by the quantity of output

14

Marginal cost equals average total cost when average total cost is at a minimum.

对

15

Diminishing marginal product occurs when the average product of an input declines as the quantity of the input

increases.

错

16

The quantity of output that minimizes the average variable cost is called the efficient scale of the firm.

错

17

Marginal cost is the increase in total cost that arises from an extra unit of production.

对

18

Diseconomies of scale arise when the long-run average total cost is diminishing as the quantity of output increases.

错

19

The marginal product is essentially the additional unit of output per unit of input.

对

20

The wonderful thing about labour is that the more people you hire, the more units you can make.

错

14

1

Which statement best applies to a perfectly competitive firm with a positive economic profit?

It will attract new firms into the industry in the long run.

2

What is a short-run supply curve for a perfectly competitive firm?

the portion of the firm's marginal-cost curve that lies above the average-variable-cost curve

3

What is a characteristic of a perfectly competitive market?

Marginal revenue equals average revenue.

4

When a perfectly competitive firm produces another unit of output, what equals its marginal revenue?

price

5

A perfectly competitive firm is producing pencils for 10 cents each. If the firm produces 1500 pencils, what is its total

revenue?

￥

150

6

In the short run, what is the level of output a profit-maximizing price taker should choose?

P

= MC, but only if P ≥ AVC

7

If prices tend to increase as industry output increases in the long run, which term best describes the long-run supply

curve?

slopes upward

8

What is the industry supply curve?

the sum of firms' marginal-cost curves

9

Which of the following is the condition for a perfectly competitive market?

There are many sellers and buyers, and the products produced in the market are similar.

10

Suppose

that

the

price

that

Firm

XYZ

can

receive

for

its

output

is

$$15

per

unit.

The

average

variable

cost

of

production

is

$$12

per

unit.

The

average

total

cost

of

production

is

$$17.

In

the

short

run,

what

conclusion

can

be

reached about this firm?

It should continue producing

11

What is a sunk cost?

a cost that has already been committed and cannot be recovered

12

Which one of the following is not a condition for a firm's long-run decision to exit the market?

P < TC

13

Mr.

Smith's

apple

farm

operates

in

a

competitive

market.

If

Smith

reduces

production

by

15

percent,

which

consequence should ensue?

no change in his prices

14 A competitive firm will produce the output that allows it to maximize profits where total revenue is a maximum.

错

15The demand curve for a purely competitive industry is perfectly elastic, but the demand curve faced by the individual

firm in a competitive market is downward sloping.

错

16Marginal revenue for the competitive firm is the additional revenue resulting from the sale of one more unit of output

and is equal to the market price.

对

17Price, marginal revenue, and average revenue are identical for a competitive firm.

对

18The long-run equilibrium of a competitive market with free entry and exit has firms operating at their efficient scale,

that is, the minimum average total cost.

对

19In a competitive market where MR = MC, firms will always maximize profits.

对

20A firm will shut down if the revenue it would get from producing is less than its total cost of production.

错

15

1What is the practice of selling the same goods to different customers at different prices but with the same marginal

cost known as?

price discrimination