CoronaQuiz 3

A firm in monopolistic competition will maximize short-run profits by producing the level of output at which:

• P=MC

• MR=MC

• P=ATC

• P=MR

_________ is the practice of selling ________ at different prices in different markets, without corresponding differences in costs.

• price discrimination; the same product

• price discrimination; different products

• monopolizing; similar products

• price fixing; different products

A perfectly competitive firm will not produce any output in the short run and will shut down if price is:

• greater than marginal cost.

• less than marginal cost.

• less than average variable cost.

• greater than average variable cost and less than average total cost.

If a perfectly competitive firm sells 30 units of output at a price of $10 per unit, its MARGINAL revenue is:

• $10

• $30

• $300

• $3

If a perfectly competitive firm sells 30 units of output at a price of $10 per unit, its TOTAL revenue is:

• $10

• $30

• $300

• $3

Pauli's Pizza offers the following prices: one slice for $2, two slices for $3.50, three slices for $4.50, four slices for $5.00. The marginal cost to the customer of the third slice is:

• $4.50

• $10

• $1

• $2

The slope of a long-run average total cost curve exhibiting diseconomies of scale is:

• Zero

• Infinite

• Positive

• Negative

Which of the following cost concepts is correctly defined?

• ATC = VC + FC

• TC = AVC + AFC

• TC = AVC + MC

• ATC = AVC + AFC

Which of the following cost concepts is correctly defined?

• ATC = VC + FC

• TC = AVC + AFC

• TC = AVC + MC

• TC = VC + FC

The marginal product of labor is:

• the total output divided by the quantity of labor employed.

• the change in output that occurs when capital increases by one unit.

• the slope of the total product of labor curve.

• the change in labor divided by the change in total product.