Question 13 (1 point)
A firm that has not shut down in the short run will not shut down in response to a decrease in the marginal costs.
Question 13 options:
1) True
2) False
Question 14 (1 point)
Saved
A firm earns a positive economic profit when the market price exceeds its marginal cost.
Question 14 options:
1) True
2) False
Question 15 (1 point)
For prices greater than the minimum value of average variable cost, the firm's short-run supply curve coincides with its short-run marginal cost curve.
Question 15 options:
1) True
2) False
Question 16 (1 point)
Saved
The number of firms in an industry is fixed in the short run.
Question 16 options:
1) True
2) False
Question 17 (1 point)
When a competitive firm earns zero profit, the market price is equal to both the firm's average and marginal costs.
Question 17 options:
1) True
2) False
Question 18 (1 point)
Saved
If the market price is currently above the shut-down price, the firm will be making positive profits.
Question 18 options:
1) True
2) False
Question 19 (1 point)
A competitive firm's supply curve is identical to its marginal cost curve.
Question 19 options:
1) True
2) False
Question 20 (1 point)
Saved
There is no reason for a competitive firm to stay in business if it is making zero profits.
Question 20 options:
1) True
2) False
Question 13 (1 point)
A firm that has not shut down in the short run will not shut down in response to a decrease in the marginal costs.
Question 13 options:
1) True | |
2) False |
Question 14 (1 point)
Saved
A firm earns a positive economic profit when the market price exceeds its marginal cost.
Question 14 options:
1) True | |
2) False |
Question 15 (1 point)
For prices greater than the minimum value of average variable cost, the firm's short-run supply curve coincides with its short-run marginal cost curve.
Question 15 options:
1) True | |
2) False |
Question 16 (1 point)
Saved
The number of firms in an industry is fixed in the short run.
Question 16 options:
1) True | |
2) False |
Question 17 (1 point)
When a competitive firm earns zero profit, the market price is equal to both the firm's average and marginal costs.
Question 17 options:
1) True | |
2) False |
Question 18 (1 point)
Saved
If the market price is currently above the shut-down price, the firm will be making positive profits.
Question 18 options:
1) True | |
2) False |
Question 19 (1 point)
A competitive firm's supply curve is identical to its marginal cost curve.
Question 19 options:
1) True | |
2) False |
Question 20 (1 point)
Saved
There is no reason for a competitive firm to stay in business if it is making zero profits.
Question 20 options:
1) True | |
2) False |