Perfectly Competitive Output Markets
Practice Questions
AP Microeconomics › Perfectly Competitive Output Markets
If the United States trades computers in exchange for cars from Germany, what must be true?
The following question is based on this table:
What is the marginal cost of producing the fourth good?
One characteristic of a public good is non-rivalry. Which of the following goods are NOT non-rivalrous?
Compared to a perfectly competitive market, a monopolist produces...
If an increase in the price of pizza causes a decrease in the demand for soda, then the two goods are:
Energy can be generated using either coal or natural gas as an input. If the supply of coal is interrupted, what are the most likely effects on the price and quantity of natural gas traded on the open market? Assume a perfectly competitive market with no government policy intervention.
Use the following table to answer the question below:
| Units | Total Variable Cost | Price |
|---|---|---|
| 1 | 10 | 20 |
| 2 | 18 | 19 |
| 3 | 24 | 18 |
| 4 | 28 | 17 |
| 5 | 30 | 16 |
| 6 | 33 | 15 |
| 7 | 38 | 14 |
| 8 | 44 | 13 |
| 9 | 52 | 12 |
| 10 | 61 | 11 |
Above is a portion of the cost structure for a theoretical firm with total fixed costs of 30. Which of the following can you say about this portion of the firm's cost structure?
Use the following table to answer the question below:
| Units | Total Variable Cost | Price |
|---|---|---|
| 1 | 10 | 20 |
| 2 | 18 | 19 |
| 3 | 24 | 18 |
| 4 | 28 | 17 |
| 5 | 30 | 16 |
| 6 | 33 | 15 |
| 7 | 38 | 14 |
| 8 | 44 | 13 |
| 9 | 52 | 12 |
| 10 | 61 | 11 |
Consider the above cost and price schedule for a theoretical firm. Assume the firm has fixed costs of 30. Within the range shown in the table, at what point are the firm's average costs lowest?
An oligopolistic industry would most likely have
The following question is based on this table:
What production level maximizes the firm's profits?