Chapter Checkpoint

Study Plan Problems and Applications

  1. Look at the list to the left. In what type of market is each good or service in the list sold? Explain your answers.

  2. Explain why in a perfectly competitive market, the firm is a price taker. Why can’t the firm choose the price at which it sells its good?

  3. Table 1 shows the demand schedule for Lin’s Fortune Cookies. Calculate Lin’s marginal revenue for each quantity demanded. Compare Lin’s marginal revenue and price. In what type of market does Lin’s Fortune Cookies operate?

    Table 1

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