• 2022-06-06
    Whichofthefollowingstatementsisnotcharacteristicofaperfectlycompetitiveindustryinlong-runequilibrium?Ceterisparibus,thereisnotendencyforfirmstoeitherenterorexittheindustry.A.A profit-maximizing firm may produce any output level at which P B.Every firm produces at an output level at which MC = LRATC.C.Ceteris paribus, there is no tendency for firms to either enter or exit the industry.D.No firm earns an economic profit.
  • A profit-maximizing firm may produce any output level at which P

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      The above figure shows a firm in monopolistic competition. At the profit maximizing level of output, excess capacity for the firm is equal to A: 0 units per day. B: 4 units per day. C: 8 units per day. D: 16 units per day

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      Which of the following firms is likely to have a high level of resource flexibility A: A firm that uses a line process B: A firm that produces only one product C: A firm whose products have stable demand D: A firm that frequently introduces new products

    • 2

      For any given price, a firm in a competitive market will maximize<br/>profit by selecting the level of output at which price intersects the<br/>( ) A: average total cost curve. B: average variable cost curve. C: marginal cost curve. D: marginal revenue curve.

    • 3

      The market structure in which the behavior of any given firm depends on the behavior of the other firms in the industry is:

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      The firm maximizes economic profit by finding the rate of output at which total revenue ________ total cost ________ . A: equals; all else constant B: plus; equals C: minus; equals zero D: exceeds; by the greatest amount.