Micro- monopoly,competition

In perfect competition, what is the goal of profit maximization?

• Maximize total revenue

• Minimize total cost

• Maximize the difference between total revenue and total cost.

• Maximize market share

In monopoly, what is the goal of profit maximization?

• 
  Maximize loss

• Maximize profit

• Minimize profit

• Ignore profit

What is the main characteristic of a perfectly competitive market?

• 
  Few buyers and sellers, identical products, control over market price

• Many buyers and sellers, identical products, no control over market price

• Many buyers and sellers, differentiated products, control over market price

• Few buyers and sellers, differentiated products, control over market price

What is the main characteristic of a monopoly market?

• Only one seller or producer

• Perfect competition

• 
  Multiple sellers or producers

• 
  Limited government intervention

In perfect competition, how does a firm determine its level of output?

• 
  By producing at the quantity where marginal cost is equal to average variable cost.

• By maximizing profits and producing at the quantity where marginal cost equals marginal revenue.

• By setting output at the level where average total cost is minimized.

• By minimizing costs and producing at the quantity where marginal cost equals marginal revenue.

What is the demand curve faced by a perfectly competitive firm?

• 
  Perfectly vertical

• 
  Perfectly elastic

• Perfectly inelastic

• 
  Perfectly horizontal

What is the demand curve faced by a monopoly firm?

• Downward sloping

• Vertical

• Horizontal

• Upward sloping

In perfect competition, what happens to economic profit in the long run?

• 
  Economic profit tends to zero.

• Economic profit decreases gradually over time.

• Economic profit increases exponentially.

• 
  Economic profit remains constant.

Land, Labor, Capital, and Entrepreneurship 

• Diversification

• Factors of Production 

• Deductions

• Portfolio

What is opportunity cost?

• the opportunity one has to give up in order to gain something else

• a graph that shows how much an economy can produce between 2 goods

• how much money something is

• 
  land, labor, capital, entrepreneurs