ECONOMICS 10-8
ECON 10-8: FINAL EXAM 12/16/00 PROF. WILDE
1. In microeconomics, we typically assume that producers are attempting to maximize profits, which can be measured by:
a) total costs ? total revenues
b) (P ? ATC) Q
c) (Q-ATC) P
d) PQ ? ATC
e) P(ATC) ? Q
2. In microeconomics, we refer to the short run as a time interval during which a producer is able to select:
a) the output quantity
b) the quantity of workers
c) the quantity of capital
d) all of the above
e) only a and b
3. Which of the following are characteristics of a perfectly competitive market?
a) firms in this market produce a homogeneous product
b) individual firms are "price-makers" in that they realistically choose both the price and the quantity of their goods
c) all firms in this market make positive economic profits in the long run
d) price will equal the minimum LRATC in the long run
e) both a and d
4. Consider the curves for a perfectly competitive firm in Figure X. At a price of $20, this firm will choose an output of :
a) 50 c) 60 e) 90
b) 55 d) 80
5. In a short run perfectly c ...