St. Philips College

ECON 101

Chapter 9

1)To maximize profits, a competitive firm will seek to expand output until

2. Marginal cost is the increase in total cost associated with a one-unit

3. Which of the following is not a characteristic of a perfectly competitive market?

4. Which of the following characterizes a firm that is in long-run perfectly competitive equilibrium where profits are maximized?

5. If price is above the long-run competitive equilibrium level,

6. The equilibrium price in a competitive market

7. Which of the following is characteristic of a perfectly competitive market?

8. When economic profits exist in the market for a particular product, this is a signal to producers that

9. Which of the following is a production decision?

10. Examples of barriers to entry include

11. If the products of two firms are homogeneous, then they

12. If catfish farmers expect catfish prices to fall in the future, then right now

13. The equilibrium price of a good or service in a competitive market is

14. Marginal cost pricing in competitive markets results in all but which one of the following?

15. In making an investment decision, an entrepreneur

16. If economic profits are earned in a competitive market, then over time

17. If a new sushi restaurant opens, then

18. The competitive market model is important because

19. When a computer firm is producing a level of output at which MC is greater than price, from society's standpoint the firm is producing too