(TCO 3) Which market model assumes the least number of firms in an industry?

ECON 312 Principles of Economics Midterm Answers


    1. (TCO 3) Which market model assumes the least number of firms in an industry?
    2. (TCO 3) Local electric or gas utility companies mostly operate in which market model?
    3. (TCO 3) The steel and automobile industries would be examples of which market model?
    4. (TCO 3) Sam owns a firm that produces tomatoes in a purely competitive market.  The firm's demand curve is
    5. (TCO 3) T-Shirt Enterprises is selling in a purely competitive market.  It is producing 3,000 units, selling them for $2 each.  At this level of output, the average total cost is $2.50 and the average variable cost is $2.20.  Based on these data, the firm should
    6. (TCO 3) A firm should increase the quantity of output as long as its
    7. (TCO 3) In pure competition, price is determined where the industry
    8. (TCO 3) Which phrase would be most characteristic of pure monopoly?
    9. (TCO 3) Natural monopolies result from
    10. (TCO 3) One feature of pure monopoly is that the demand curve
    11. (TCO 3) Which case below best represents a case of price discrimination?
    12. (TCO 3) Which of the following is a characteristic of monopolistic competition?
    13. (TCO 3) Which set of characteristics below best describes the basic features of monopolistic competition?
    14. (TCO 3) In an oligopolistic market there are
    15. (TCO 3) A low concentration ratio means that
    16. (TCO 3) A major reason that firms form a cartel is to
    17. (TCO 1) Money is not an economic resource because
    18. (TCO 1) Refer to the diagram which refers to the Circular Flow Model in Chapter 2.  Arrows (1) and (3) are associated with
    19. (TCO 2) Refer to the diagram.  An increase in quantity demanded is depicted by a
    20. (TCO 2) Refer to the information and assume the stadium capacity is 5,000.  If the Mudhens' management wanted a full house for the game, it would
  • Price per Ticket 
  • Quantity Demanded 
  •  $13
  •  1,000
  •  11
  •  2,000
  •  9
  •  3,000
  •  7
  •  4,000
  •  5
  •  5,000
  •  3
  •  6,000
  1. (TCO 2) Which type of goods is most adversely affected by recessions?
  2. (TCO 3) The following cost data are for a firm in the short run
  3. (TCO 1) Refer to the diagram.  Points A, B, C, D, and E show
  4. (TCO 3) Assume that the owners of the only gambling casino in Wisconsin spend large sums of money lobbying state government officials to protect their gambling monopoly.  Economists refer to these expenditures as
  5. (TCO 3) a.) What is the relationship between economies of scale and a natural monopoly?  b.) Why is the level of output at which marginal revenue equals marginal cost the profit-maximizing output?
  6. (TCO 2) What effect should each of the following have upon the demand for portable music players in a competitive market?  Explain your reasoning in each case