NDSU ECON 201 EXAM 4
why are perfectly competitive firms allocatively efficient? - Answer-because price equals marginal cost
Nate owns a tattoo parlor in downtown Fargo. on Sunday, he expects to bring in $200 in revenue and his
costs are projected to be $440 for TFC and $325 for TVC. He will: - Answer-earn a loss and should shut
down for the day
For a perfectly competitive firm the demand curve facing the firm will be - Answer-a horizontal line on
the graph
if production is occurring where marginal cost exceeds price, the perfectly competitive firm will: -
Answer-fail to maximize profit and resources will be over-allocated to the product
in the short run a perfectly competitive firm's supply curve ins that segment of the: - Answer-marginal
cost curve lying above the average variable cost curve
I think the perfect competition model should be called heaven instead - Answer-true, I said it in class
T/F...for a perfectly competitive firms the marginal revenue curve is the same as the average revenue
curve - Answer-true
T/F...in class we agreed that producing 300 million plastic novelty hats would be a good use of resources
in this country - Answer-false
why are perfectly competitive firms allocatively efficient? - Answer-because price equals marginal cost
Nate owns a tattoo parlor in downtown Fargo. on Sunday, he expects to bring in $200 in revenue and his
costs are projected to be $440 for TFC and $325 for TVC. He will: - Answer-earn a loss and should shut
down for the day
For a perfectly competitive firm the demand curve facing the firm will be - Answer-a horizontal line on
the graph
if production is occurring where marginal cost exceeds price, the perfectly competitive firm will: -
Answer-fail to maximize profit and resources will be over-allocated to the product
in the short run a perfectly competitive firm's supply curve ins that segment of the: - Answer-marginal
cost curve lying above the average variable cost curve
I think the perfect competition model should be called heaven instead - Answer-true, I said it in class
T/F...for a perfectly competitive firms the marginal revenue curve is the same as the average revenue
curve - Answer-true
T/F...in class we agreed that producing 300 million plastic novelty hats would be a good use of resources
in this country - Answer-false
