Questions to ECO 365 Week 2 Knowledge Check are as follow:
1. A perfectly competitive firm will be profitable if price at the
Profit maximizing quantity is above
· MC
· ACV
· ATC
· AFC
2. in a perfectly competitive market,
· individual producers determine market prices
· market supply and market demand determine the price
· the entrepreneur determines the price
· individual consumers determine market prices
Click here to download ECO 365 Week 2 Learning Team Reflection Production and Cost Analysis
3. The demand for clothing increases. As a result, the price of Clothing increases above the minimum average cost of producing it. In the long run, if the clothing industry is
Perfectly competitive and is a constant-cost industry,
· the supply of clothing and the price of clothing will increase
· the supply of clothing will increase but the price will not
· the price of clothing will increase but the price will not
· neither the price nor the supply of clothing will increase
4. If the long-run market supply curve is perfectly elastic, an
Increase in demand will cause the final equilibrium to be at
· the original price but at a smaller output
· a higher price with a higher output
· the original price but with a higher output
· a higher price but with the same output
5. Number of workers Total Output
1 4
2 10
3 18
4 28
5 35
6 41
7 45
8 48
9 50
10 49
