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ECON 202 OLE MISS HAYES MIDTERM LATEST 2026-2027 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
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
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.
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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.
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.
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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.
Broadly defined, technological advance - ANSWER-comprises
new and improved goods and services and/or new and improved
ways of producing or distributing them.
U.S. firms collectively devote the largest portion of their total R&D
spending to - ANSWER-innovation and diffusion.
The modern view of technological advance is that it - ANSWER-is
an internal element of capitalism, occurring in response to profit
incentives.
Normative statements are expressions of facts - ANSWER-False
An increase in immigration would shift the production possibilities
curve to the left - ANSWER-False
The study of economics is not useful for consumers, because
economic analysis focuses only on businesses and the economy.
- ANSWER-False
ECON 202 OLE MISS HAYES MIDTERM LATEST 2026-2027 ACTUAL
EXAM WITH COMPLETE QUESTIONS AND CORRECT DETAILED
ANSWERS (100% VERIFIED ANSWERS) |ALREADY GRADED A+|
||PROFESSOR VERIFIED|| ||BRANDNEW!!!||
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
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.
,2|Page
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.
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.
, 3|Page
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.
Broadly defined, technological advance - ANSWER-comprises
new and improved goods and services and/or new and improved
ways of producing or distributing them.
U.S. firms collectively devote the largest portion of their total R&D
spending to - ANSWER-innovation and diffusion.
The modern view of technological advance is that it - ANSWER-is
an internal element of capitalism, occurring in response to profit
incentives.
Normative statements are expressions of facts - ANSWER-False
An increase in immigration would shift the production possibilities
curve to the left - ANSWER-False
The study of economics is not useful for consumers, because
economic analysis focuses only on businesses and the economy.
- ANSWER-False
