Biology Forums - Study Force

Which of the following statements concerning perfect competition is not true?
 a. Firms are price takers.
  b. The demand curve facing an individual firm is horizontal.
  c. A firm's demand curve is identical to its marginal revenue curve.
  d. The firms produce differentiated products.
  e. If a firm raises its price, it will lose all of its customers.

QUESTION 2

Peak load pricing which causes consumers to pay higher prices at certain times leads to greater efficiency.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

If the slope of the rays from the origin to the total variable cost curve declines along the curve, it implies:
 a. the average variable cost is falling.
  b. the marginal cost is falling.
  c. the average variable cost is rising.
  d. the marginal cost is rising.

QUESTION 5

Perfect competition describes a firm's behavior in a market model where:
 a. there are few firms producing identical products.
  b. there are few firms producing highly differentiated products.
  c. there are many firms producing identical products.
  d. there are many firms producing highly differentiated products.
  e. there are barriers to entry and exit for the new firms.

QUESTION 6

A price-discriminating monopoly firm will tend to charge a higher price to customers with a greater willingness to pay than it does to customers with a lower willingness to pay.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

Any terms of trade within the limits set by domestic opportunity costs will be mutually harmful, because each country tries to push the other as close to the limits of the terms of trade as possible.
 a. True
  b. False
  Indicate whether the statement is true or false

[Answer to ques. #1]  d

[Answer to ques. #2]  TRUE

[Answer to ques. #3]  TRUE

[Answer to ques. #4]  A

[Answer to ques. #5]  c

[Answer to ques. #6]  TRUE

[Answer to ques. #7]  FALSE

All are correct

Happy to help