Category: Costs , Supply And Perfect Competition

A. All of these answers are characteristic of a competitive market
B. The are many buyers and sellers in the market
C. The goods offered for sale are largely the same.
D. Firms generate small but positive economic profits in the long run
E. Firms can freely enter or exit the market

A. the minimum of their average-total-cost curves
B. all of these answers are correct
C. their efficient scale
D. zero economic profit
E. intersection of marginal cost and marginal revenue

A. entire marginal cost curve
B. upward-sloping portion of the average total cost curve
C. portion of the marginal cost curve that lies above the average total cost curve
D. upward-sloping portion of the average variable cost curve
E. portion of the marginal cost curve that lies above the average variable cost curve.

A. long run average cost is lowest
B. marginal revenue equals output
C. marginal revenue equals long run marginal cost
D. marginal cost equals output

A. Short run opportunity costs, profit
B. Short run variable costs, profit
C. Short run average variable costs, profit
D. Short run average variable costs, profit run average fixed costs

A. many buyers and sellers
B. a standard product
C. free entry and exit
D. perfect information
E. all of the above

A. Total revenue is maximized
B. Marginal revenue equals zero
C. Marginal revenue equals marginal cost
D. Marginal revenue equals average cost

A. Short run abnormal profits are completed away by firms leaving the industry
B. Short run abnormal profits are competed away by firms entering the industry
C. Short run abnormal profits are competed away by the government
D. Short run abnormal profits are competed away by greater advertising

A. price = average cost = marginal cost
B. price = average cost = total cost
C. price = marginal cost = total cost
D. Total revenue = Total variable cost

A. Buyer power is higher
B. Supplier power is higher
C. Substitute threat is higher
D. Rivalry is lower