Vandana1544164 (1)

University of Phoenix **We aren't endorsed by this school
AND 2020
Nov 9, 2023
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INVIGILATED ONLINE ASSESSMENT #3 STUDENT ID 1544164 STUDENT NAME Vandana SUBJECT NAME: Economics SUBJECT CODE: MCR001 B TIME ALLOWED: 30 Minutes INSTRUCTIONS FOR STUDENTS: You do not require a separate answer booklet. Please type your responses in the answer box provided. Type your full name and ID at the top of this page. All questions are compulsory. If you are completing this invigilated assessment online, you will need to have your camera on for the duration of the assessment . This invigilated assessment is worth 15% of your total grade for this subject. MCR001 B Trimester 3 2023 Invigilated Online Assessment #3 Page 1 of 7
PART A 10 Multiple Choice questions Each question is worth one (1) mark. 1. The characteristics that describe a perfectly competitive industry include a) many firms selling an identical product. b) a few firms selling to many buyers. c) many firms selling a slightly differentiated product. d) one firm selling to many buyers. e) None of the above answers is correct. ANSWER = a 2. One requirement for an industry to be perfectly competitive is that a) many firms sell slightly different products. b) there are many firms selling different products. c) there are multiple restrictions on entry into or exit from the market. d) there are no restrictions on entry into or exit from the market. e) sellers and buyers have imperfect information about prices. ANSWER = d 3. In which market structure does one firm sell a good or service with no close substitutes and there is a barrier blocking the entry of new firms? a) Only oligopoly b) Only monopoly c) Perfect competition d) Monopolistic competition e) Either monopoly or oligopoly ANSWER = b 4. Any firm's over-riding objective is to a) avoid an economic loss. b) maximise normal profit. c) maximise total revenue. d) earn a normal profit. e) maximise economic profit. ANSWER = e MCR001 B Trimester 3 2023 Invigilated Online Assessment #3 Page 2 of 7
5. We know that a perfectly competitive firm is a price taker because a) MC and ATC are equal at the profit-maximising amount of output. b) its MC curve slopes upward. c) its demand curve is horizontal. d) its ATC curve is U-shaped. e) it has no supply curve. ANSWER = c 6. For a perfectly competitive firm, the price of its good is equal to the firm's marginal revenue because a) there are only a small number of firms in the market. b) individual perfectly competitive firms cannot influence the market price by changing their output. c) the firm's total revenue cannot be changed by anything the firms do. d) information about price changes is hard to come by for small sellers. e) price and marginal revenue are the same economic concepts. ANSWER = b 7. How does the demand for any one seller's product in perfect competition compare to the market demand for that product? a) The demand for any one seller's product is perfectly elastic while the market demand curve is downward sloping. b) The demand for any one seller is proportionally smaller but otherwise identical to the market demand. c) The demand for any one seller's product is not perfectly elastic, while the market demand is perfectly elastic. d) They are identical. e) There is no demand for any one seller's competitively sold product. ANSWER = b 8. What does monopolistic competition have in common with monopoly? a) A downward-sloping demand curve. b) Mutual interdependence. c) Barriers to entry. d) A large number of firms. e) The ability to collude with respect to price. ANSWER = a MCR001 B Trimester 3 2023 Invigilated Online Assessment #3 Page 3 of 7
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