Q1. Suppose a price-taker firm produces baseball bats that sell at a price of $100 each. This firm’s average total cost at the current level of production is $150 per bat, and the average fixed cost is $40 per bat. Which of the following statements is most accurate regarding this firm? They should:

A)    shut down in the short run because their average variable cost is greater than their price.

B)    continue producing baseball bats because they are covering their fixed costs.

C)    shut down in the short run because their average total cost is greater than their price.

Q2. A perfectly competitive firm will not expand its output beyond the quantity where:
   

A)   the marginal cost is greater than marginal revenue.

B)   the market price is equal to its marginal cost.

C)   its marginal revenue is positive.

Q3. Which of the following is most accurate for a price-taker firm in long-run equilibrium when there are no barriers to entry?

A)   P = AVC = MR.

B)   P = MC = ATC = MR.

C)   TC = TR = MC.

Q4. Under perfect competition, a firm will experience zero long term economic profit when:

A)   MC = ATC = MR = price.

B)   MC is less than ATC.

C)   price is less than average total cost.

Q5. A firm operating as a price taker will:
   

A)   be a revenue maximizer.

B)   produce quantity where P = MR = MC.

C)   Face an inelastic demand curve.

[此贴子已经被作者于2009-1-6 13:47:27编辑过]

答案和详解如下：

Q1. Suppose a price-taker firm produces baseball bats that sell at a price of $100 each. This firm’s average total cost at the current level of production is $150 per bat, and the average fixed cost is $40 per bat. Which of the following statements is most accurate regarding this firm? They should:

A)    shut down in the short run because their average variable cost is greater than their price.

B)    continue producing baseball bats because they are covering their fixed costs.

C)    shut down in the short run because their average total cost is greater than their price.

Correct answer is A)

Variable costs = $150 (ATC) − $40 (AFC) = $110 (AVC). At a selling price of $100 the firm is not covering its variable costs and will have losses greater than its fixed costs if it stays in business.

Q2. A perfectly competitive firm will not expand its output beyond the quantity where:

A)   the marginal cost is greater than marginal revenue.

B)   the market price is equal to its marginal cost.

C)   its marginal revenue is positive.

Correct answer is B)

A perfectly competitive firm will tend to expand its output so long as the market price is greater than marginal cost. In the short term and long term, profit is maximized when P = MC.

Q3. Which of the following is most accurate for a price-taker firm in long-run equilibrium when there are no barriers to entry?

A)   P = AVC = MR.

B)   P = MC = ATC = MR.

C)   TC = TR = MC.

Correct answer is B)

For a price-taker firm, long-run equilibrium is where P = MC = ATC. For price taking firms, P = MC. Competition eliminates economic profits in the long run so that P = ATC.

Q4. Under perfect competition, a firm will experience zero long term economic profit when:

A)   MC = ATC = MR = price.

B)   MC is less than ATC.

C)   price is less than average total cost.

Correct answer is A)

Under perfect competition, a firm will experience zero long term profits when P = MC = MR = ATC. It recovers all costs including opportunity costs and earns zero economic profit.

Q5. A firm operating as a price taker will:

A)   be a revenue maximizer.

B)   produce quantity where P = MR = MC.

C)   Face an inelastic demand curve.

Correct answer is B)

A firm operating as a price taker will produce quantity where MC = MR. It will maximize profit and not revenue. In the long run, it will make zero economic profits after taking into account fair return on capital.

O(∩_∩)O谢谢

thx

看答案 aabab