5学原理》(微观)第五版测试题库-(14)

929Chapter14FirmsinCompetitiveMarketsTRUE/FALSE1.Forafirmoperatinginaperfectlycompetitiveindustry,totalrevenue,marginalrevenue,andaveragerevenueareallequal.ANS:FDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:Averagerevenue|MarginalrevenueMSC:Interpretive2.Forafirmoperatinginaperfectlycompetitiveindustry,marginalrevenueandaveragerevenueareequal.ANS:TDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:Averagerevenue|MarginalrevenueMSC:Interpretive3.Ifafirmnoticesthatitsaveragerevenueequalsthecurrentmarketprice,thatfirmmustbeparticipatinginacompetitivemarket.ANS:FDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:AveragerevenueMSC:Interpretive4.Aprofit-maximizingfirminacompetitivemarketwillincreaseproductionwhenaveragerevenueexceedsmarginalcost.ANS:TDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:AveragerevenueMSC:Interpretive5.Becausetherearemanybuyersandsellersinaperfectlycompetitivemarket,noonesellercaninfluencethemarketprice.ANS:TDIF:1REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:CompetitivemarketsMSC:Definitional6.Firmsoperatinginperfectlycompetitivemarketstrytomaximizeprofits.ANS:TDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Applicative7.Incompetitivemarkets,firmsthatraisetheirpricesaretypicallyrewardedwithlargerprofits.ANS:FDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:CompetitivemarketsMSC:Interpretive8.Whenanindividualfirminacompetitivemarketincreasesitsproduction,itislikelythatthemarketpricewillfall.ANS:FDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:CompetitivemarketsMSC:Interpretive9.Inacompetitivemarket,firmsareunabletodifferentiatetheirproductfromthatofotherproducers.ANS:TDIF:1REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:CompetitivemarketsMSC:Interpretive10.Firmsinacompetitivemarketaresaidtobepricetakersbecausetherearemanysellersinthemarketandthegoodsofferedbythefirmsareverysimilarifnotidentical.ANS:TDIF:2REF:14-1NAT:AnalyticLOC:PerfectcompetitionTOP:CompetitivemarketsMSC:Interpretive930Chapter14/FirmsinCompetitiveMarkets11.Afirm'sincentivetocomparemarginalrevenueandmarginalcostisanapplicationoftheprinciplethatrationalpeoplethinkatthemargin.ANS:TDIF:1REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Interpretive12.Bycomparingthemarginalrevenueandmarginalcostfromeachunitproduced,afirminacompetitivemarketcandeterminetheprofit-maximizinglevelofproduction.ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Interpretive13.Firmsoperatinginperfectlycompetitivemarketsproduceanoutputlevelwheremarginalrevenueequalsmarginalcost.ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:MarginalrevenueMSC:Applicative14.Afirmiscurrentlyproducing100unitsofoutputperday.Themanagerreportstotheownerthatproducingthe100thunitcoststhefirm$5.Thefirmcansellthe100thunitfor$4.75.Thefirmshouldcontinuetoproduce100unitsinordertomaximizeitsprofits(orminimizeitslosses).ANS:FDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Analytical15.Afirmiscurrentlyproducing100unitsofoutputperday.Themanagerreportstotheownerthatproducingthe100thunitcoststhefirm$5.Thefirmcansellthe100thunitfor$5.Thefirmshouldcontinuetoproduce100unitsinordertomaximizeitsprofits(orminimizeitslosses).ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Analytical16.Afirmiscurrentlyproducing100unitsofoutputperday.Themanagerreportstotheownerthatproducingthe100thunitcoststhefirm$5.Thefirmcanselltheunitfor$6.Thefirmshouldproducemorethan100unitsinordertomaximizeitsprofits(orminimizeitslosses).ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Analytical17.Adairyfarmermustbeabletocalculatesunkcostsinordertodeterminehowmuchrevenuethefarmreceivesforthetypicalgallonofmilk.ANS:FDIF:1REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:SunkcostsMSC:Interpretive18.Becausenothingcanbedoneaboutsunkcosts,theyareirrelevanttodecisionsaboutbusinessstrategy.ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:SunkcostsMSC:Interpretive19.Aminiaturegolfcourseisagoodexampleofwherefixedcostsbecomerelevanttothedecisionofwhentoopenandwhentoclosefortheseason.ANS:FDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:SunkcostsMSC:Interpretive20.Apopularresortrestaurantwillmaximizeprofitsifitchoosestostayopenduringtheless-crowded“offseason”whenitstotalrevenuesexceeditsvariablecosts.ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:SunkcostsMSC:InterpretiveChapter14/FirmsinCompetitiveMarkets93121.Allfirmsmaximizeprofitsbyproducinganoutputlevelwheremarginalrevenueequalsmarginalcost;forfirmsoperatinginperfectlycompetitiveindustries,maximizingprofitsalsomeansproducinganoutputlevelwherepriceequalsmarginalcost.ANS:TDIF:2REF:14-2NAT:AnalyticLOC:PerfectcompetitionTOP:ProfitmaximizationMSC:Interpretive22.Afirmoperatinginaperfectlycompetitiveindustrywillcontinuetooperateintheshortrunbutearnlossesifthemarketpriceislessthanthatfirm’saveragetotalcostbutgreaterthanthefirm’saveragevariablecost.ANS:TDIF:2REF:14-2NAT:AnalyticLOC:Perfectcompetition