Which statement about the total surplus is correct? Question 10 options: it is equal to value to buyers minus cost to sellers All other answers are correct It is equal to consumer surplus plus producer surplus It is maximized, under certain conditions, if perfect competition exists
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Which statement about the total surplus is correct?
Question 10 options:
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it is equal to value to buyers minus cost to sellers |
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All other answers are correct |
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It is equal to |
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It is maximized, under certain conditions, if |
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- In the model of perfectly competitive markets, the market outcome is allocatively efficient because Question 4 options: all firms are price takers all firms break even in the long run the sum of consumer and producer surplus is maximized economic profits are maximized average total cost is minimized for each firmA primary characteristic of a competitive market is that Question 1 options: a) government antitrust laws regulate competition b) producers sell nearly identical products c) firms minimize total costs d) firms have price setting powerIf a firm is producing at a quantity in which the marginal cost exceeds marginal revenue, the firm _____. Question 15 options: a must decrease output to increase profit b must increase output to increase profit c is maximizing profit d must shut-down to increase profit
- Which of the following characteristics does NOT describe a perfectly competitive market? Question 2 options: There are many people who desire and have the ability to purchase the product. Companies are able to enter and exit the market without any restrictions. Firms set different prices for their product, either at or above the equilibrium price. Many firms are producing identical productsWhich three of the following factors are associated with a perfect market? A high degree of mutual interdependency between competing firms B.Transparency of production methods and cost structures No barriers to entry into the market D Strong brand images amnong competing products in the market E The inability of buyers and sellers to influence the market price The following two statements have been made about the accounting and auditing professions (1) Only a member of a CCAB or IFAC body may refer to themselves as an accountant when dealing with clients and members of the public (2) The Financial Reporting Council has statutory powers in relation to the regulatory framework for the auditing profession which have been delegated by the government Are these statements accurate or inaccurate statement (1) Inaccurate; statement (2) Accurate statement (1) Accurate; statement (2) Accurate; statement (1) Inaccurate; statement (2) Inaccurate; statement (1) Accurate; statement (2)…Which of the following is not true for a competitive market? Group of answer choices Firms can earn positive economic profits in the long run Firms sell nearly identical products There are many buyers and sellers Firms expect zero economic long-run profits
- Perfect Competition in the Long Run and Efficiency Scenario Imagine a market where there is perfect competition between two or more companies, such as a fish market where vendors offer the same product at the same price or online ticket auctions like StubHub. In this market there are four key elements to perfect competition: A large number of buyers and sellers: No barriers to entry or exit: Perfect mobility for customers choosing products: Homogenous products. Explain how output, price, and profit are determined in your perfectly competitive market in the long run. How does that lead to efficiency? How could changes in technology affect the market? How could an increase in demand affect the market?What are the effects of new businesses entering the market?What are the effects of businesses leaving the market?In a purely competitive market at its long-run equilibrium, which of the following is not true? a The marginal benefit of the last unit of the product equals the marginal cost of producing that unit. b The maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit. c Price equals marginal cost, and they are equal to the lowest attainable average cost of production. d The combined amount of consumer and producer surpluses is at its minimum possible.What happens to the amount of consumer surplus and producer surplus when the supply of scarves suddenly declines (shifts left)? Group of answer choices Consumer surplus is unchanged and producer surplus is unchanged. Consumer surplus declines and producer surplus is unchanged. Producer surplus increases and consumer surplus increases. Producer surplus declines and consumer surplus is unchanged. Consumer surplus declines and producer surplus declines.
- The fact that perfectly competitive firms have ______ creates a level of output that is allocatively efficient. Question 5 options: no ability to set the price a differentiated product perfect information free entry and exit asymmetric informationAssume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit. To maximize its profit, the firm should a. increase its output b. continue to produce 1,000 units c. decrease its output but continue to d. shut downif a competitive firm's marginal costs always increase with output then at the profit maximising output level, producer surplus is
