ECONOMICS 203 Midterm Exam Quiz 2 Questions and Answers

Quiz Submissions - Quiz #2 ~ ECON 203   Chapter 8 Question 1 1 / 1 point If a firm's revenues do not cover its average variable costs, then that firm has reached its _________________ . a)  price taking point b)  shutdown point c)  opportunity margin d)  marginal point Chapter 8 perfectly competitive market, Question 2 1 / 1 point If a perfectly competitive firm is a price taker, then a)  pressure from competing firms will force acceptance of the prevailing market price. b)  it must be a relatively small player compared to its competitors in the overall market. c)  it can increase or decrease its output without affecting overall quantity supplied in the market. d)  quality differences will be very perceptible and will play a major role in purchasers' decisions.   Chapter 8 perfectly competitive firm Question 3 1 / 1 point In the ________, the perfectly competitive firm will react to losses by __________________________ .   a)  short run; reducing production or shutting down b)  short run; increasing physical inputs c)  long run; reducing production or shutting down d)  long run; increasing capital inputs