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AP Micro Perfect Competition Quiz

Authored by Garrett Gilmore

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11th Grade

Used 1+ times

AP Micro Perfect Competition Quiz
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10 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Demand and supply in perfect competition: What happens to the equilibrium price and quantity in perfect competition when there is an increase in consumer income?

Lower equilibrium price and quantity

Higher equilibrium price and quantity

No change in equilibrium price and quantity

Decrease in equilibrium price and quantity

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Demand and supply in perfect competition: Explain the concept of producer surplus in perfect competition.

In perfect competition, producer surplus is the extra amount of money paid by the producer to the consumers.

The producer surplus in perfect competition is the difference between the cost of production and the selling price of the good.

The producer surplus in perfect competition is the difference between the price at which a producer is willing to supply a good and the actual price received in the market.

Producer surplus in perfect competition is the amount of profit made by the consumers.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Profit maximization in perfect competition: What is the profit-maximizing level of output for a firm in perfect competition?

Where average cost equals average revenue

Where marginal cost equals marginal revenue

Where total cost equals total revenue

Where fixed cost equals variable cost

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Profit maximization in perfect competition: How does a firm in perfect competition determine its level of output to maximize profit?

By producing at the quantity where total cost equals total revenue.

By producing at the quantity where marginal cost equals marginal revenue.

By producing at the quantity where average cost equals average revenue.

By producing at the quantity where fixed cost equals variable cost.

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Shut down point in perfect competition: Define the shut down point for a firm in perfect competition.

When the price is higher than the minimum average variable cost

When the price is equal to the minimum average total cost

When the price falls below the minimum average variable cost

When the price is lower than the minimum average total cost

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Shut down point in perfect competition: What factors determine whether a firm should shut down or continue operating in the short run in perfect competition?

Average costs, government regulations, and long-term planning

Total costs, demand curve, and breaking even

Variable costs, market price, and minimizing losses

Fixed costs, market price, and maximizing profits

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Long-run equilibrium in perfect competition: Describe the long-run equilibrium condition for a firm in perfect competition.

Marginal cost is equal to average total cost, and price is equal to marginal revenue.

Marginal cost is greater than marginal revenue, and price is less than average total cost.

Marginal cost equals marginal revenue, and price equals average total cost.

Marginal cost is less than marginal revenue, and price is greater than average total cost.

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