Pasaran Persaingan Sempurna Problem Set

1. Pasaran Persaingan Sempurna Problem Set

2. PROBLEM 1: Di antara berikut yang manakah tidak berlaku dalam industri persaingan sempurna di mana firma bertujuan memaksimumkan keuntungan ? • Firma bersaiz kecil • Bebas masuk dan keluar industri • Membelanjakan pengiklanan oleh firma • Memperolehi untung normal dalam jangka panjang • Keluk penawaran jangka pendek firma adalah keluk kos marginal jangka pendek

3. PROBLEM 1 (cont 1): Di antara berikut yang manakah tidak berlaku dalam industri persaingan sempurna di mana firma bertujuan memaksimumkan keuntungan ? • Firma bersaiz kecil • Bebas masuk dan keluar industri • Membelanjakan pengiklanan oleh firma • Memperolehi untung normal dalam jangka panjang • Keluk penawaran jangka pendek firma adalah keluk kos marginal jangka pendek

4. PROBLEM 2: Apakah syarat bagi keseimbangan jangka pendek sesebuah firma dalam pasaran persaingan sempurna? • Keluk kos marginal memotong keluk hasil marginal dari atas • Keluk kos marginal memotong keluk hasil marginal dari bawah • Keluk kos marginal memotong keluk kos purata dari atas • Keluk kos marginal memotong keluk kos purata dari bawah • Keluk kos marginal memotong keluk kos berubah purata dari bawah

5. PROBLEM 2 (cont 2): Apakah syarat bagi keseimbangan jangka pendek sesebuah firma dalam pasaran persaingan sempurna? • Keluk kos marginal memotong keluk hasil marginal dari atas • Keluk kos marginal memotong keluk hasil marginal dari bawah • Keluk kos marginal memotong keluk kos purata dari atas • Keluk kos marginal memotong keluk kos purata dari bawah • Keluk kos marginal memotong keluk kos berubah purata dari bawah

6. PROBLEM 3: In the market period, price and quantity are determined by: • The actions of both buyers and sellers • The action of only the buyers • The producers since they can control the amount of output that is placed on the market • Forces other than supply and demand because the supply curve is completely inelastic • None of the above statements is correct

7. PROBLEM 3: In the market period, price and quantity are determined by: • The actions of both buyers and sellers • The action of only the buyers • The producers since they can control the amount of output that is placed on the market • Forces other than supply and demand because the supply curve is completely inelastic • None of the above statements is correct

8. PROBLEM 4: For the firm operation is a perfectly competitive market, profit maximization is attained at that level of the output where: • The price of the product is equal to the marginal cost of production that last unit sold. • The marginal revenue generated when the last unit is sold is equal to the cost of producing the last unit • The slope of the total revenue curve is equal to the slope of the total cost revenue. • The vertical distance between the total revenue and the total cost curve is maximized • All the above statements are correct

9. PROBLEM 4: For the firm operation is a perfectly competitive market, profit maximization is attained at that level of the output where: • The price of the product is equal to the marginal cost of production that last unit sold. • The marginal revenue generated when the last unit is sold is equal to the cost of producing the last unit • The slope of the total revenue curve is equal to the slope of the total cost revenue. • The vertical distance between the total revenue and the total cost curve is maximized • All the above statements are correct

10. PROBLEM 5: When a market is perfectly competitive on both the buying and selling side, individual buyers and sellers: • Can buy or sell all that they want at the prevailing market price • Are price takers in the market price • Assume that they cannot affect market price • Regard the price of the good as being given to them • All of the above are correct statements

11. PROBLEM 5: When a market is perfectly competitive on both the buying and selling side, individual buyers and sellers: • Can buy or sell all that they want at the prevailing market price • Are price takers in the market price • Assume that they cannot affect market price • Regard the price of the good as being given to them • All of the above are correct statements

12. PROBLEM 6: Which one of the following statements correctly describes some characteristic of a perfectly competitive market? • Under perfect competition, each firm is a price taker. • Under perfect competition, there are many buyers and sellers in the market • Under perfect competition, there are no barriers to entry into the market • Under perfect competition, each seller produces and sells products that are perfect substitutes. • All of the above characteristics of perfectly competitive markets

13. PROBLEM 6: Which one of the following statements correctly describes some characteristic of a perfectly competitive market? • Under perfect competition, each firm is a price taker. • Under perfect competition, there are many buyers and sellers in the market • Under perfect competition, there are no barriers to entry into the market • Under perfect competition, each seller produces and sells products that are perfect substitutes. • All of the above characteristics of perfectly competitive markets

14. PROBLEM 7: Suppose that you own the XYZ Co. and produce widgets. You operate in a perfectly competitive output market. Currently your production is 2,000 widgets per time period, and total cost of RM12,000, total fixed cost of RM4,000, and a marginal revenue of RM3. In order to maximize your profits or minimize your loses, you should: • Shutdown and produce no widget in order to minimize your losses • Expand your output in order to increase your total revenue • Reduce your output to 1,000 widget in order to reduce your total cost production to RM6,000 • Continue producing 2,000 widget in the short run but not in the long run • Not enough information is provided to make decision

15. PROBLEM 7: Suppose that you own the XYZ Co. and produce widgets. You operate in a perfectly competitive output market. Currently your production is 2,000 widgets per time period, and total cost of RM12,000, total fixed cost of RM4,000, and a marginal revenue of RM3. In order to maximize your profits or minimize your loses, you should: • Shutdown and produce no widget in order to minimize your losses • Expand your output in order to increase your total revenue • Reduce your output to 1,000 widget in order to reduce your total cost production to RM6,000 • Continue producing 2,000 widget in the short run but not in the long run • Not enough information is provided to make decision VC = TC – FC = 8000; AVC = 8000/2000 = 4 ; P= MR = 3; AVC >P

16. PROBLEM 8: For the typical perfectly competitive firm operating in the short run, it should reduce its output to zero if: • The price that it receive for its output is greater that its marginal cost. • The price that it receive for its product is less than average total cost • The price that it receive for its product is less than average variable cost • The price that it receive for its product is less than average variable cost • Total cost is less than total revenue

17. PROBLEM 8: For the typical perfectly competitive firm operating in the short run, it should reduce its output to zero if: • The price that it receive for its output is greater that its marginal cost. • The price that it receive for its product is less than average total cost • The price that it receive for its product is less than average variable cost • The price that it receive for its product is less than average variable cost • Total cost is less than total revenue

18. PROBLEM 9: If the price faced by a competitive firm is less than its average total cost but greater than its average variable cost when it produces a particular level of output, the firm: • is making a positive profit and should continue to produce • Is incurring a loss in the short run, but is should continue to produce in order to minimize it’s loss • Is breaking even, and so it should continue to produce a positive level of output • d) Is incurring a loss and should shut down its plant immediately in order to minimize its loss • e) None if the above is correct

19. PROBLEM 9: If the price faced by a competitive firm is less than its average total cost but greater than its average variable cost when it produces a particular level of output, the firm: • is making a positive profit and should continue to produce • Is incurring a loss in the short run, but is should continue to produce in order to minimize it’s loss • Is breaking even, and so it should continue to produce a positive level of output • d) Is incurring a loss and should shut down its plant immediately in order to minimize its loss • e) None if the above is correct

20. PROBLEM 10: The perfectly competitive firm in the long run: • Earns a positive profit since TR>TC • May produce even if it is suffering a loss • Does not have a shut down price • Earns only a normal profit • None of the above is correct

21. PROBLEM 10: The perfectly competitive firm in the long run: • Earns a positive profit since TR>TC • May produce even if it is suffering a loss • Does not have a shut down price • Earns only a normal profit • None of the above is correct