Chapter 13
Firms in Competitive Markets
Multiple Choice
1. A market is competitive if
(i) firms have the flexibility to price their own product.
(ii) each buyer is small compared to the market.
(iii) each ller is small compared to the market.
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a. (i) and (ii) only
b. (i) and (iii) only
c. (ii) and (iii) only
d. All of the above are correct.
ANSWER: c. (ii) and (iii) only
TYPE: M DIFFICULTY: 2 SECTION: 14.1
2. When a firm has little ability to influence market prices it is said to be in what kind of a market?
a. a competitive market
b. a strategic market
c. a thin market
d. a power market
ANSWER: a. a competitive market
TYPE: M DIFFICULTY: 1 SECTION: 14.1
3. In a competitive market, the actions of any single buyer or ller will
a. have a negligible impact on the market price.
b. have little effect on overall production but will ultimately change final product price.
c. cau a noticeable change in overall production and a change in final product price.
d. adverly affect the profitability of more than one firm in the market.
ANSWER: a. have a negligible impact on the market price.
TYPE: M DIFFICULTY: 2 SECTION: 14.1
U the information in the table below to answer questions 4 through 7.
Quantity Price
1 13
2 13
3 13散文朗读
4 13
5 13
6 13
7 13
禁毒知识讲座 8 13
9 13
4. The price and quantity relationship in the table is most likely that faced by a firm in a
a. monopoly.
b. concentrated market.
c. competitive market.
d. strategic market.
ANSWER: c. competitive market.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
5. Over which range of output is average revenue equal to price?
a. 1 to 5
b. 3 to 7
c. 5 to 9
d. Average revenue is equal to price over the whole range of output.
ANSWER: d. Average revenue is equal to price over the whole range of output.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
6. Over what range of output is marginal revenue declining?
a. 1 to 6
b. 3 to 7
c. 7 to 9
d. None; marginal revenue is constant over the whole range of output.
ANSWER: d. None; marginal revenue is constant over the whole range of output.
TYPE: M DIFFICULTY: 2 SECTION: 14.1
7. If the firm doubles its output from 3 to 6 units, total revenue will
a. increa by less than $39.
b. increa by exactly $39.
c. increa by more than $39.
d. It cannot be determined from the information provided.
ANSWER: b. increa by exactly $39.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
8. For a firm in a perfectly competitive market, the price of the good is always
a. equal to marginal revenue.
b. equal to total revenue.
c. greater than average revenue.
d. All of the above are correct.
ANSWER: a. equal to marginal revenue.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
9. If a firm in a perfectly competitive market triples the number of units of output sold, then total revenue will
a. more than triple.
b. less than triple.
c. exactly triple.
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d. All of the above are potentially true.
ANSWER: c. exactly triple.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
10. Becau the goods offered for sale in a competitive market are largely the same,
a. there will be few llers in the market.
b. there will be few buyers in the market.
c. buyers will have market power.
d. llers will have little reason to charge less than the going market price.
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ANSWER: d. llers will have little reason to charge less than the going market price.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
11. Which of the following is NOT a characteristic of a perfectly competitive market?
a. Firms are price takers.
b. Firms have difficulty entering the market.
c. There are many llers in the market.
d. Goods offered for sale are largely the same.
ANSWER: b. Firms have difficulty entering the market.道德楷模
TYPE: M DIFFICULTY: 1 SECTION: 14.1
12. When buyers in a competitive market take the lling price as given, they are said to be
烟花烂漫 a. market entrants.
b. monopolists.
c. free riders.
d. price takers.
ANSWER: d. price takers.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
13. When firms are said to be price takers, it implies that if a firm rais its price,
a. buyers will go elwhere.
b. buyers will pay the higher price in the short run.
c. competitors will also rai their prices.
杨贵妃传奇 d. firms in the industry will exerci market power.
ANSWER: a. buyers will go elwhere.
TYPE: M DIFFICULTY: 1 SECTION: 14.1
14. Which of the following statements best reflects a price-taking firm?
