ASU HCD 201 FINAL EXAM PREP WITH ALL CORRECT &
VERIFIED ANSWERS (UPDATED TO PASS)
Fixed input Correct answer-Inputs that cannot be increased or decreased in the short run are
called
C. A lemonade stand Correct answer-Which of the following would most likely reach the long run
most rapidly?
a. A healthcare provider
B. A power plant
C. A lemonade stand
Lower the price of all units Correct answer-In order for ASU Pharmacy to sell more units of their
patented drug with an elastic demand, they must:
It intersects both the ATC and the AVC curves at their minimums Correct answer-What is true of
the MC curve?
d. All of the above Correct answer-Which of the following would help identify market structure?
a. The number of firms in the industry
b. Type of product in the industry
c. Ease of entry into the industry
d. All of the above
c. Each firm knows the quantity it wants to sell Correct answer-Which of the following is true of a
perfectly competitive market structure?
a. Firms experience increasing returns to scale
b. Positive economic profit is possible in the long run
c. Each firm knows the quantity it wants to sell
c. Firms producing identical products Correct answer-Which of the following is likely to be present
in a perfectly competitive market?
a. Patents
b. Government licenses
c. Firms producing identical products
d. Economic profits
True Correct answer-True or False? For perfectly competitive firms P=MR=AR
Average variable costs are at least equal to price per unit Correct answer-A firm will continue to
operate at a loss in the short-run as long as its:
Marginal cost Correct answer-If two perfectly competitive firms in the long-run produce the same
quantity at the market price, then, at that quantity, they must have the same:
output is produced at minimum average cost Correct answer-Productive efficiency occurs when
VERIFIED ANSWERS (UPDATED TO PASS)
Fixed input Correct answer-Inputs that cannot be increased or decreased in the short run are
called
C. A lemonade stand Correct answer-Which of the following would most likely reach the long run
most rapidly?
a. A healthcare provider
B. A power plant
C. A lemonade stand
Lower the price of all units Correct answer-In order for ASU Pharmacy to sell more units of their
patented drug with an elastic demand, they must:
It intersects both the ATC and the AVC curves at their minimums Correct answer-What is true of
the MC curve?
d. All of the above Correct answer-Which of the following would help identify market structure?
a. The number of firms in the industry
b. Type of product in the industry
c. Ease of entry into the industry
d. All of the above
c. Each firm knows the quantity it wants to sell Correct answer-Which of the following is true of a
perfectly competitive market structure?
a. Firms experience increasing returns to scale
b. Positive economic profit is possible in the long run
c. Each firm knows the quantity it wants to sell
c. Firms producing identical products Correct answer-Which of the following is likely to be present
in a perfectly competitive market?
a. Patents
b. Government licenses
c. Firms producing identical products
d. Economic profits
True Correct answer-True or False? For perfectly competitive firms P=MR=AR
Average variable costs are at least equal to price per unit Correct answer-A firm will continue to
operate at a loss in the short-run as long as its:
Marginal cost Correct answer-If two perfectly competitive firms in the long-run produce the same
quantity at the market price, then, at that quantity, they must have the same:
output is produced at minimum average cost Correct answer-Productive efficiency occurs when
