The Firm & Market Structures

If the price elasticity of demand coefficient is greater than 1, how is the demand characterized?

What does a positive income elasticity (I_e > 0) indicate about a good?

If the cross-price elasticity between two goods is negative, how are the goods related?

Which of the following is a characteristic of Perfect Competition?

In a perfectly competitive market, what is the relationship between Marginal Revenue (MR), Average Revenue (AR), and Price (P)?

How is Total Revenue (TR) calculated?

In an imperfect market (e.g., Monopoly), what is the relationship between Marginal Revenue (MR) and Price?

If a firm has a Total Fixed Cost (TFC) of USD 25, what will be the TFC if the quantity produced doubles?

How is Total Cost (TC) defined?

If Total Fixed Cost is USD 30 and output is 10 units, what is the Average Fixed Cost (AFC)?

Which cost curve continually declines as output increases?

What does the vertical distance between the Average Total Cost (ATC) and Average Variable Cost (AVC) curves represent?

At what point does cost minimization occur regarding the Marginal Cost (MC) curve?

If producing 5 units costs USD 50 and producing 6 units costs USD 55, what is the Marginal Cost for the 6th unit?

What condition must be met for a firm to maximize profits?

In the short run, when should a firm shut down?

What defines the breakeven point for a firm?

In the long run, when will a firm shut down?

What happens initially to Average Total Cost (ATC) as production increases?

Which curve represents the firm's supply curve in the short run under perfect competition?

What is 'Normal Profit'?

In the long run equilibrium for Perfect Competition, what is the relationship between Price and ATC?

Under Monopolistic Competition in the long run, which of the following is true regarding price and ATC?

What distinguishes Monopolistic Competition from Perfect Competition regarding products?

In an Oligopoly, what describes the barriers to entry?

Which market structure involves a single seller with unique products?

What does the 'Kinked Demand Curve' model in oligopoly suggest about price changes?

What is the key assumption of the Cournot model?

What is a Nash Equilibrium?

Which market concentration measure involves summing the squared market shares of the largest firms?

Calculate the N-firm concentration ratio for N=4 if the market shares are 30 percent, 20 percent, 10 percent, and 5 percent.

What is a major limitation of both the N-firm concentration ratio and the Herfindahl-Hirschman Index?

In the Dominant Firm Model, how is the market price determined?

If a product has an income elasticity of -0.5, it is classified as:

If selling 8 units at USD 4 results in an Average Revenue of USD 4, what is the market structure likely to be?

What does a concentration ratio of 100 percent for N=1 indicate?

In the short run for a perfectly competitive firm, if Price (P) is greater than ATC, the firm is:

What implies 'allocative efficiency' in Perfect Competition?

Calculate HHI if there are two firms with 50 percent market share each.

Which market structure engages heavily in advertising to maintain a competitive edge?

If a firm increases production from 3 units to 4 units, and Total Revenue increases from USD 24 to USD 31, what is the Marginal Revenue of the 4th unit?

What creates a natural monopoly?

In the context of the Prisoner's Dilemma (Game Theory), what outcome often occurs?

Which elasticity indicates that good A is a substitute for good B?

If a firm in Perfect Competition raises its price above the market price, what happens?

Average Variable Cost (AVC) is calculated by:

Diseconomies of scale occur when:

According to the Cournot strategy, in long-run equilibrium:

Which pricing strategy involves a firm utilizing its large market share and lower cost structure to set prices?

If a government wishes to measure market power but wants to capture the merger effect more accurately, which metric is preferred?