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ECON 202 OLE MISS HAYES MIDTERM NEWEST 2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
If a purely competitive firm is producing at the MR = MC output
level and earning an economic profit, then - ANSWER-new firms
will enter this market.
Long-run adjustments in purely competitive markets primarily take
the form of - ANSWER-entry or exit of firms in the market.
Long-run competitive equilibrium - ANSWER-results in zero
economic profits.
Which of the following will not hold true for a competitive firm in
long-run equilibrium? - ANSWER-P equals AFC.
If this diagram represents a typical firm in the industry and the firm
is producing at the profit-maximizing level of output in the short
run, then in the long run we would expect more firms to enter the
market. - ANSWER-True
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In the long run for a purely competitive market, firms will earn only
normal profits - ANSWER-True
The diagram shows the average total cost curve for a purely
competitive firm. At the long-run equilibrium level of output, this
firm's total revenue - ANSWER-10$
Pure monopoly refers to - ANSWER-a single firm producing a
product for which there are no close substitutes.
Pure monopolists may obtain economic profits in the long run
because - ANSWER-of barriers to entry.
Which of the following is not a barrier to entry? - ANSWER-X-
inefficiency
The nondiscriminating pure monopolist's demand curve -
ANSWER-is the industry demand curve.
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The nondiscriminating monopolist's demand curve - ANSWER-is
less elastic than a purely competitive firm's demand curve.
The MR = MC rule - ANSWER-applies both to pure monopoly and
pure competition.
Refer to the diagram. To maximize profits or minimize losses, this
firm should produce - ANSWER-E units and charge price A
A pure monopolist will maximize profits by producing at that
output where price and marginal cost are equal. - ANSWER-False
One major barrier to entry under pure monopoly arises from -
ANSWER-ownership of essential resources.
Which is a major criticism of a monopoly as a source of allocative
inefficiency? - ANSWER-A monopolist fails to expand output to
the level where the consumers' valuation of an additional unit is
just equal to its opportunity cost.
ECON 202 OLE MISS HAYES MIDTERM NEWEST 2026 ACTUAL EXAM
WITH COMPLETE QUESTIONS AND CORRECT DETAILED ANSWERS
(100% VERIFIED ANSWERS) |ALREADY GRADED A+| ||PROFESSOR
VERIFIED||
If a purely competitive firm is producing at the MR = MC output
level and earning an economic profit, then - ANSWER-new firms
will enter this market.
Long-run adjustments in purely competitive markets primarily take
the form of - ANSWER-entry or exit of firms in the market.
Long-run competitive equilibrium - ANSWER-results in zero
economic profits.
Which of the following will not hold true for a competitive firm in
long-run equilibrium? - ANSWER-P equals AFC.
If this diagram represents a typical firm in the industry and the firm
is producing at the profit-maximizing level of output in the short
run, then in the long run we would expect more firms to enter the
market. - ANSWER-True
,2|Page
In the long run for a purely competitive market, firms will earn only
normal profits - ANSWER-True
The diagram shows the average total cost curve for a purely
competitive firm. At the long-run equilibrium level of output, this
firm's total revenue - ANSWER-10$
Pure monopoly refers to - ANSWER-a single firm producing a
product for which there are no close substitutes.
Pure monopolists may obtain economic profits in the long run
because - ANSWER-of barriers to entry.
Which of the following is not a barrier to entry? - ANSWER-X-
inefficiency
The nondiscriminating pure monopolist's demand curve -
ANSWER-is the industry demand curve.
, 3|Page
The nondiscriminating monopolist's demand curve - ANSWER-is
less elastic than a purely competitive firm's demand curve.
The MR = MC rule - ANSWER-applies both to pure monopoly and
pure competition.
Refer to the diagram. To maximize profits or minimize losses, this
firm should produce - ANSWER-E units and charge price A
A pure monopolist will maximize profits by producing at that
output where price and marginal cost are equal. - ANSWER-False
One major barrier to entry under pure monopoly arises from -
ANSWER-ownership of essential resources.
Which is a major criticism of a monopoly as a source of allocative
inefficiency? - ANSWER-A monopolist fails to expand output to
the level where the consumers' valuation of an additional unit is
just equal to its opportunity cost.
