OneClass: 1. If it is easy for a firm to get into or exit from a market, then a firm in that market w...

If it is easy for a firm to get into or exit from a market, then a firm in that market will be able to earn positive economic profits

Select one:

a. only in a perfectly competitive or a monopoly market structure.

b. only in the short run.

c. only in an oligopolistic or a monopolistically competitive market structure.

d. only if it is a monopoly.

e. only if it is an oligopoly.

When economic profit is positive,

Select one:

a. accounting profit can be negative.

b. accounting profit can be zero.

c. accounting profit must be positive.

d. total revenue is maximum.

e. a normal profit is earned.

1) What describes the competitive environment in the market for any good or service? market structure OR market power OR market price

2) Real or perceived differences in the quality of goods and services offered to consumers leads to product differentation. TRUE OR FALSE

3) "In the long run, competitive firms can earn only a:" positive economic profit OR Zero Economic profit OR Negative Economic Profit

scarletsalmon140

A. A competitive firm

can consider only its location in setting the price.
must base its competitive price on product differentiation.
has the ability to set its own price.
must accept the price determined by the intersection of the market supply and demand curves.
has no supply curve.

B. If a firm is making an economic profit, then

the factors of production are being paid their opportunity costs.
there will be no change in the number of firms if the industry is perfectly competitive.
the factors of production are being paid less than their opportunity costs.
the factors of production are being paid more than their opportunity costs.
the firm will exit the industry

C. Along a downward-sloping monopoly demand curve,

marginal revenue is greater than price.
the elasticity of demand is constant.
marginal revenue decreases when the price decreases.
marginal revenue is equal to zero when the price is equal to zero

D. If, in the short run, a perfectly competitive firm is producing at a point where the total cost is greater than total revenue, then the firm should

shut down because economic profits are negative.
continue to produce as long as P > AVC.
continue to produce because accounting profits are positive.
set a higher price for its output.
set a lower price for its output

E. For a perfectly competitive firm, the demand curve is

the marginal revenue curve.
perfectly inelastic.
always equal to marginal cost.
the same as the market demand curve

F. A firm in a(n) industry will have the most elastic demand curve

monopolistic
oligopolistic
monopolistically competitive
perfectly competitive

G. If the demand curve of a monopolist is in the inelastic range, then

total revenue will fall if the price increases.
total revenue will be unchanged if the price increases.
total revenue will rise if the price increases.
the total supply will increase by an equal amount if demand increases.
the price will be unchanged if total revenue increases

H. Monopolistic competition and oligopoly are examples of

monopoly.
perfect competition.
theories of consumer behavior.
imperfect competition.
the extreme cases on the market structure continuum

I. Under which market structure do firms face the flattest (most elastic) demand curve?

perfect competition
monopolistic competition
oligopoly
monopoly

J. At the point of long-run equilibrium for a perfectly competitive firm,

economic profits are zero.
TR > TC.
TR < TC.
P = AVC.
normal profits are zero.

brownlouse308

Unlock all answers

Related textbook solutions

Principles of Economics

Principles of Macroeconomics

Principles of Microeconomics

Related questions

Weekly leaderboard