Figure 15

57. Figure 15 shows short run and long run average total cost curves. Section A, B, and C respectively demonstrate:

1. economies of scale, diseconomies of scale, constant returns to scale

2. economies of scale, constant returns to scale, diseconomies of scale

3. diseconomies of scale, constant returns to scale, economies of scale

4. diseconomies of scale, economies of scale, constant returns to scale

5. constant returns to scale, economies of scale, diseconomies of scale

58. Which of the following correctly describes a perfectly competitive firm’s short run supply curve?

1. marginal cost curve

2. rising portion of the marginal cost curve

3. rising portion of the marginal cost curve above equilibrium

4. rising portion of the marginal cost curve above average variable cost

5. rising portion of the marginal cost curve above average total cost

59. Under conditions of imperfect competition which of the following is true for a profit maximizing firm?

1. AR > MR

2. MR > AR

3. AR > P

4. AR < P

5. AR = MR

60. Based on the information in the following table, what is the only answer set that could be answered zero, and yes?

Long Run Profits Efficient Producer

Perfect Competition

Monopolistic Competition

Oligopoly

Pure Monopoly

1. Perfect competition

2. Monopolistic competition

3. Oligopoly

4. Pure monopoly

5. All of the above

Answers

1. C

2. C

3. C

4. B

5. B

6. A

7. B

8. C

9. B

10. C

11. C

12. D

13. A

14. C

15. D

16. C

17. B

18. D

19. A

20. D

21. D

22. B

23. B

24. E

25. B

26. B

27. B

28. C

29. D

30. B

31. C

32. B

33. D

34. B

35. A

36. D

37. C

38. C

39. E

40. A

41. A

42. C

43. C

44. B

45. B

46. D

47. B

48. C

49. C

50. A

51. B

52. A

53. C

54. C

55. D

56. B

57. B

58. D

59. A

60. A