A) firms can freely enter and exit, and economic profit is zero in the long run.
B) firms can freely enter and exit, and economic profit is greater than zero in the long run.
C) there are some barriers to entry and exit, and economic profit is zero in the long run.
D) there are some barriers to entry and exit, and economic profit is greater than zero in the long run.
E) firms can freely enter and exit, and economic profit is zero in the short run.
Correct Answer
verified
Correct Answer
verified
A) the goal of a brand name is to encourage people to buy just one good.After the initial purchases, Tommy Hilfiger can decrease quality and produce goods at a lower average total cost, which increases economic profit.
B) in every type of market, consumers are most comfortable when buying from a firm with a well-known brand name.And the greater the number of consumers, the greater is the economic profit.
C) a brand name provides an incentive to achieve high and consistent quality, and consumers will purchase goods from Tommy Hilfiger rather than from an unknown producer because they know what to expect from Tommy Hilfiger.
D) having a brand name usually leads to a monopoly.
E) none of the above.
Correct Answer
verified
Correct Answer
verified
A) at the minimum average total cost.
B) to the left of the minimum average total cost.
C) to the right of the minimum average total cost.
D) at no point.
E) at the same quantity at which the marginal cost curve intersects the marginal revenue curve.
Correct Answer
verified
Correct Answer
verified
A) marginal cost equals price.
B) price equals marginal revenue.
C) average total cost equals price.
D) marginal cost equals marginal revenue.
E) average variable cost equals price.
Correct Answer
verified
Correct Answer
verified
A) Firms will continue producing and endure the losses.
B) Firms will leave the industry until the remaining firms make positive economic profit.
C) Firms will ask the government for financial aid.
D) Firms will leave the industry until the remaining firms make zero economic profit.
E) The level of investment in this industry will increase to boost the economy.
Correct Answer
verified
Correct Answer
verified
A) there will be entry of rival firms into the industry.
B) rival firms will exit the industry.
C) it is producing the efficient quantity.
D) the number of firms in the industry will remain constant.
E) economic profit will fall over time.
Correct Answer
verified
Correct Answer
verified
A) firms compete on quality, price and marketing.
B) the range of choice of products is the same as in perfectly competitive industries.
C) firms are insensitive to changes in consumer demand.
D) all firms produce a quantity at which marginal cost is greater than marginal benefit.
E) all firms make an economic profit.
Correct Answer
verified
Correct Answer
verified
A) $100
B) $95
C) $75
D) $120
E) $90
Correct Answer
verified
Correct Answer
verified
A) is greater than;not pushed
B) equals;pushed
C) is greater than;pushed
D) equals;not pushed
E) is less than;not pushed
Correct Answer
verified
Correct Answer
verified
A) does not exist in monopoly.
B) does not exist in monopolistic competition.
C) exists in perfect competition.
D) is the difference between price and average total cost.
E) exists in both monopoly and monopolistic competition.
Correct Answer
verified
Correct Answer
verified
A) are never efficient.
B) can be efficient but are not always efficient.
C) are equally efficient in monopolistically competitive markets and perfectly competitive markets.
D) are always efficient.
E) are more efficient in perfectly competitive markets than in monopolistically competitive markets.
Correct Answer
verified
Correct Answer
verified
A) faces a perfectly elastic demand.
B) produces more than the quantity at minimum ATC.
C) produces less than the quantity at minimum ATC.
D) produces the quantity at minimum ATC.
E) makes an economic profit.
Correct Answer
verified
Correct Answer
verified
A) All firms charge a price equal to average total cost.
B) All firms charge a price equal to marginal cost.
C) All firms make an economic profit.
D) The demand, average total cost, and marginal cost curves all intersect at the same point.
E) Firms have an incentive to enter the industry.
Correct Answer
verified
Correct Answer
verified
A) decreases by $100.
B) increases by $50.
C) increases by $75.
D) decreases by $60.
E) decreases by an unknown amount.
Correct Answer
verified
Correct Answer
verified
A) new firms enter, and each existing firm's demand curve shifts leftward.
B) new firms enter, and each existing firm's demand curve shifts rightward.
C) existing firms exit, and each remaining firm's demand curve shifts leftward.
D) existing firms exit, and each remaining firm's demand curve shifts rightward.
E) the equilibrium is the same as in the short run.
Correct Answer
verified
Correct Answer
verified
A) incurs an economic loss.
B) makes zero economic profit.
C) makes an economic profit.
D) makes less economic profit than that earned by firms in perfect competition.
E) makes an unknown economic profit that is impossible to determine without information concerning the price charged by the rival firms.
Correct Answer
verified
Correct Answer
verified
A) greater than a monopoly and the same as a perfectly competitive firm.
B) greater than a perfectly competitive firm.
C) less than a perfectly competitive firm.
D) the same as a monopoly.
E) less than a monopoly.
Correct Answer
verified
Correct Answer
verified
A) means that each firm has a small market share.
B) makes it possible for each firm's price to deviate by a large amount from the average price of the other firms.
C) means that a firm must pay attention to the behaviour of all of its competitors.
D) All of the above answers are correct.
E) None of the above answers are correct.
Correct Answer
verified
Correct Answer
verified
A) there will be entry of rival firms into the industry.
B) rival firms will exit the industry.
C) its profit will rise over time.
D) this firm will exit the industry in the long run.
E) none of the above.
Correct Answer
verified
Correct Answer
verified
A) Dole Co.supplies a small portion of the market's output.
B) Dole Co.'s product is slightly different from its competitors.
C) Dole Co.faced no barrier to entry when it decided to enter its market.
D) Dole Co.is unable to collude with other firms in the market.
E) All of the above describe Dole Co.'s market.
Correct Answer
verified
Correct Answer
verified
Showing 41 - 60 of 111
Related Exams