Liberty University ECON 213 Quiz 9 Complete Solutions Correct Answers Key
A fully solved Quiz 9 for ECON 213, ensuring thorough understanding.
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Liberty University ECON 213 quiz 9 complete solutions correct answers key
Two versions
Question 1 In the long run, if a firm is making a loss, it will:
Question 2 Refer to the accompanying figure. This firm’s shortrun supply curve is represented by
the:
Question 3 In competitive markets:
Question 4 Jim and Lisa own a doggrooming business in Champlain, New York, called JL
Groomers. There are many buyers and many sellers in the doggrooming service market. JL
Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average
variable cost (AVC) at $14 and average total cost (ATC) at $22. JL Groomers will always shut down
if the market price is:
Question 5 Dave’s Batting Cages is located in Boston, Massachusetts. During the first year of
operation, Dave’s Batting Cages incurred many costs. In that year, Dave spent $5,000 on labor,
$2,000 on maintenance, and $1,000 on electricity. Dave took out a loan to open his business, in
which he would have earned $1,500, and his previous job, which he could get back at any time,
paid him $50,000. Dave’s Batting Cages incurred _________ in explicit costs.
Question 6 Refer to the accompanying figure to answer the questions that follow. If the price is $3,
the firm is making:
Question 7 A firm’s willingness to supply its product in the long run is represented on a graph by
the:
Question 8 The accompanying table represents the quantity produced, the total revenue, and the
total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the
questions that follow. Profits are maximized when producing:
Question 9 Firms will be indifferent about shutting down or producing if the price they charge is:
Question 10 The accompanying table represents the quantity produced, the total revenue, and the
total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the
questions that follow. When profits are maximized, profits are equal to:
Question 11 If firms in a competitive market are making positive economic profits, you would
Two versions
Question 1 In the long run, if a firm is making a loss, it will:
Question 2 Refer to the accompanying figure. This firm’s shortrun supply curve is represented by
the:
Question 3 In competitive markets:
Question 4 Jim and Lisa own a doggrooming business in Champlain, New York, called JL
Groomers. There are many buyers and many sellers in the doggrooming service market. JL
Groomers experiences normal cost curves, with the marginal cost (MC) curve crossing average
variable cost (AVC) at $14 and average total cost (ATC) at $22. JL Groomers will always shut down
if the market price is:
Question 5 Dave’s Batting Cages is located in Boston, Massachusetts. During the first year of
operation, Dave’s Batting Cages incurred many costs. In that year, Dave spent $5,000 on labor,
$2,000 on maintenance, and $1,000 on electricity. Dave took out a loan to open his business, in
which he would have earned $1,500, and his previous job, which he could get back at any time,
paid him $50,000. Dave’s Batting Cages incurred _________ in explicit costs.
Question 6 Refer to the accompanying figure to answer the questions that follow. If the price is $3,
the firm is making:
Question 7 A firm’s willingness to supply its product in the long run is represented on a graph by
the:
Question 8 The accompanying table represents the quantity produced, the total revenue, and the
total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the
questions that follow. Profits are maximized when producing:
Question 9 Firms will be indifferent about shutting down or producing if the price they charge is:
Question 10 The accompanying table represents the quantity produced, the total revenue, and the
total cost of a firm operating in a perfectly competitive market. Refer to this table to answer the
questions that follow. When profits are maximized, profits are equal to:
Question 11 If firms in a competitive market are making positive economic profits, you would
expect firms to:
Question 12 A firm will shut down in the longrun if the:
Question 13 Which of the following lists the three main characteristics of a competitive market?
Question 14 Refer to the accompanying figure. A firm would be suffering a loss but still be
producing if the price is:
Question 15 Charlie’s Churros is a perfectly competitive firm that sells desserts in Houston, Texas.
Charlie’s Churros currently is taking in $40,000 in revenues, and has $15,000 in explicit costs and
$25,000 in implicit costs. Charlie’s Churros’ accounting profits are:
Question 16 Tom’s Campgrounds is a firm conducting business in a competitive market. Tom
realizes he is making a loss and is trying to decide whether to shut down or stay open. He should
stay open:
Question 17 If Dirk’s Doughnuts is a perfectly competitive firm and is currently incurring economic
losses of $500:
Question 18 One reason why the longrun supply curve may slope upward in a competitive market
is that:
Question 19 If Nicole’s KnickKnacks is a perfectly competitive firm and is making zero economic
profits:
Question 20 Refer to the accompanying set of graphs to answer the questions that follow. Which
graph would result in firms exiting a perfectly competitive market in the long run?
Version B
Question 1 In a competitive market, if one firm raises its price relative to the other firms in the
market, consumers are willing to go to another firm because:
Question 2 Refer to the accompanying table. A firm participating in a competitive market with
these costs would be indifferent about producing or shutting down if the price is:
Question 3 Refer to the accompanying figure. Point _________ corresponds to the profitmaximizing
quantity that a competitive firm would produce.
Question 12 A firm will shut down in the longrun if the:
Question 13 Which of the following lists the three main characteristics of a competitive market?
Question 14 Refer to the accompanying figure. A firm would be suffering a loss but still be
producing if the price is:
Question 15 Charlie’s Churros is a perfectly competitive firm that sells desserts in Houston, Texas.
Charlie’s Churros currently is taking in $40,000 in revenues, and has $15,000 in explicit costs and
$25,000 in implicit costs. Charlie’s Churros’ accounting profits are:
Question 16 Tom’s Campgrounds is a firm conducting business in a competitive market. Tom
realizes he is making a loss and is trying to decide whether to shut down or stay open. He should
stay open:
Question 17 If Dirk’s Doughnuts is a perfectly competitive firm and is currently incurring economic
losses of $500:
Question 18 One reason why the longrun supply curve may slope upward in a competitive market
is that:
Question 19 If Nicole’s KnickKnacks is a perfectly competitive firm and is making zero economic
profits:
Question 20 Refer to the accompanying set of graphs to answer the questions that follow. Which
graph would result in firms exiting a perfectly competitive market in the long run?
Version B
Question 1 In a competitive market, if one firm raises its price relative to the other firms in the
market, consumers are willing to go to another firm because:
Question 2 Refer to the accompanying table. A firm participating in a competitive market with
these costs would be indifferent about producing or shutting down if the price is:
Question 3 Refer to the accompanying figure. Point _________ corresponds to the profitmaximizing
quantity that a competitive firm would produce.
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Document Details
University
Liberty University
Subject
Economics