【正文】 at efficient scale.ANS: T DIF: 2 REF: 143 NAT: AnalyticLOC: Perfect petition TOP: Zeroprofit condition MSC: Interpretive46. In the long run, a petitive market with 1,000 identical firms will experience an equilibrium price equal to the minimum of each firm39。Chapter 14/Firms in Competitive Markets v 1053Chapter 14Firms in Competitive MarketsTRUE/FALSE1. For a firm operating in a perfectly petitive industry, total revenue, marginal revenue, and average revenue are all equal.ANS: F DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Average revenue | Marginal revenueMSC: Interpretive2. For a firm operating in a perfectly petitive industry, marginal revenue and average revenue are equal.ANS: T DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Average revenue | Marginal revenueMSC: Interpretive3. If a firm notices that its average revenue equals the current market price, that firm must be participating in a petitive market.ANS: F DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Average revenue MSC: Interpretive4. A profitmaximizing firm in a petitive market will increase production when average revenue exceeds marginal cost.ANS: T DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Average revenue MSC: Interpretive5. Because there are many buyers and sellers in a perfectly petitive market, no one seller can influence the market price.ANS: T DIF: 1 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Competitive markets MSC: Definitional6. Firms operating in perfectly petitive markets try to maximize profits.ANS: T DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Profit maximization MSC: Applicative7. In petitive markets, firms that raise their prices are typically rewarded with larger profits.ANS: F DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Competitive markets MSC: Interpretive8. When an individual firm in a petitive market increases its production, it is likely that the market price will fall.ANS: F DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Competitive markets MSC: Interpretive9. In a petitive market, firms are unable to differentiate their product from that of other producers.ANS: T DIF: 1 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Competitive markets MSC: Interpretive10. Firms in a petitive market are said to be price takers because there are many sellers in the market and the goods offered by the firms are very similar if not identical.ANS: T DIF: 2 REF: 141 NAT: AnalyticLOC: Perfect petition TOP: Competitive markets MSC: Interpretive11. A firm39。s incentive to pare marginal revenue and marginal cost is an application of the principle that rational people think at the margin.ANS: T DIF: 1 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Profit maximization MSC: Interpretive12. By paring the marginal revenue and marginal cost from each unit produced, a firm in a petitive market can determine the profitmaximizing level of production.ANS: T DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Profit maximization MSC: Interpretive13. Firms operating in perfectly petitive markets produce an output level where marginal revenue equals marginal cost.ANS: T DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Marginal revenue MSC: Applicative14. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $. The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses).ANS: F DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Profit maximization MSC: Analytical15. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the 100th unit for $5. The firm should continue to produce 100 units in order to maximize its profits (or minimize its losses).ANS: T DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Profit maximization MSC: Analytical16. A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs the firm $5. The firm can sell the unit for $6. The firm should produce more than 100 units in order to maximize its profits (or minimize its losses).ANS: T DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Profit maximization MSC: Analytical17. A dairy farmer must be able to calculate sunk costs in order to determine how much revenue the farm receives for the typical gallon of milk.ANS: F DIF: 1 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Sunk costs MSC: Interpretive18. Because nothing can be done about sunk costs, they are irrelevant to decisions about business strategy.ANS: T DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Sunk costs MSC: Interpretive19. A miniature golf course is a good example of where fixed costs bee relevant to the decision of when to open and when to close for the season.ANS: F DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Sunk costs MSC: Interpretive20. A popular resort restaurant will maximize profits if it chooses to stay open during the lesscrowded “off season” when its total revenues exceed its variable costs.ANS: T DIF: 2 REF: 142 NAT: AnalyticLOC: Perfect petition TOP: Sunk costs MSC: Interpretive21. All firms maximize profits by producing an output level where marginal revenue equals marginal cost。s average total cost.ANS: T DIF: 2 REF: 143 NAT: AnalyticLOC: Perfect petition TOP: Zeroprofit condition MSC: Interpretive47. In a longrun equilibrium where firms have identical costs, it is possible that some firms in a petitive market are making a positive economic profit.ANS: F DIF: 2 REF: 143 NAT: AnalyticLOC: