《江西财经大学微观经济学试题库》chapter 12.docVIP

Microeconomics, 10e (Parkin) Chapter 12 Perfect Competition 1 What is Perfect Competition? 1) Perfect competition arises if the ________ efficient scale of a single producer is ________ relative to the demand for the good or service. A) minimum; small B) minimum; large C) maximum; small D) maximum; large Answer: A Topic: How Perfect Competition Arises Skill: Recognition Question history: Previous edition, Chapter 12 AACSB: Reflective Thinking 2) Which of the following is true regarding a perfectly competitive firm? A) The firm can charge a lower price than its competitors and thereby sell more output and increase its profits. B) The firm always earns a normal profit. C) The firms marginal revenue continually decreases. D) The firms minimum efficient scale is small relative to the market demand. Answer: D Topic: How Perfect Competition Arises Skill: Recognition Question history: Previous edition, Chapter 12 AACSB: Reflective Thinking 3) The smallest quantity of output at which long-run average cost is at a minimum is a firms ________. A) maximum efficient scale B) profit-maximizing output point C) minimum efficient scale D) efficient output point Answer: C Topic: How Perfect Competition Arises Skill: Recognition Question history: Previous edition, Chapter 12 AACSB: Reflective Thinking 4) If the minimum efficient scale of a firm is small relative to the demand for the good, then A) many small firms can compete in the market. B) several large firms will enter the market thereby reducing competition. C) there will be no economic profits for any small firms, so no new firms will ever enter the market. D) the firms already in the market have lower average total cost than any new firm entering the market. Answer: A Topic: How Perfect Competition Arises Skill: Recognition Question history: Previous edition, Chapter 12 AACSB: Reflective Thinking 5) In perfect competition, the A) market demand for the good or service is large relative to the minimum