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King: Economics

Chapter 09

Instructions

Answer the following questions and then press 'Submit' to get your score.

Question 1

Which of the following statements about the market supply curve for a product is false?

Question 2

Which of the following statements about a firm which is a price-taker is false?

Question 3

On a graph for a perfect competitor, which of the following curves coincide?

Question 4

A profit-maximizing perfect competitor is setting an output of 100 per day. Which of the following statements is false?

Question 5

A profit-maximizing perfect competitor is setting an output of 100 per day and is making a profit. Which of the following statements is false?

Question 6

A perfect competitor finds that the best it can do if it produces any output is to produce a daily output of 100 units which it will sell at the market price or AR of £10, but even then it would then make a loss. Under what circumstances would it definitely make a smaller loss if it shut down and produced nothing?

Question 7

Which part of a perfect competitor's short-run marginal cost curve, SMC, is also its short-run supply curve, SS?

Question 8

A profit-maximizing perfect competitor is in short-run equilibrium with an output of 100 per day. Which of the following events would not cause it to alter its output in the short-run?

Question 9

A profit-maximizing perfect competitor faces a price of £10 and is in long-run equilibrium with an output of 100 per day. At an output of 100, which of the following will have a value of £10?

Question 10

When would a perfectly competitive industry have a long-run supply curve that slopes downwards?