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.Management Sciences
Category: Costs , Supply And Perfect Competition
In the long-run some firms will exit the market if the price of the good offered for sale is less than ?
A. marginal revenue
B. marginal cost
C. average total cost
D. average revenue
In a competitive industry each buyer and seller ?
A. is a price taker
B. Producer different products
C. Believes that can influence price
D. Prevents the entry of competitors
If the long-run market supply curve for a good is perfectly elastic, an increase in the demand for that good will, in the long run, cause ?
A. an increase in the number of firms in the market but no increase in the price of the good
B. an increase the price of the good and an increase in the number of firms in the market
C. an increase the price of the good but no increase in the number of firms in the market
D. no impact on either the price of the good or the number of firms in the market
In the short run firms in perfect competition will still produce provided ?
A. The price covers average variable cost
B. The price covers variable cost
C. The price covers average fixed cost
D. The price covers fixed costs
A production is technique is technically efficient if ?
A. output is maximized
B. inputs are minimized
C. there is no way to make a given output using less of one input and no more of the other inputs
D. Costs are minimized
In Porter’s five force model conditions are more favorable for firms within an industry if ?
A. Buyer power is high
B. Supplier power is high
C. Entry threat is low
D. Substitute threat is high
The competitive firm maximize profit when it produces output up to the point where ?
A. price equals average variable cost
B. marginal revenue equals average revenue
C. marginal cost equals total revenue
D. marginal cost equals marginal revenue
If a long run average cost curve is falling form left to right this is an example of ?
A. increasing returns to scale
B. decreasing returns to scale
C. constant returns to scale
D. the minimum efficient scale
If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?
A. perfectly inelastic
B. perfectly elastic
C. upward sloping
D. downward sloping
In perfect competition ?
A. The products firm offer is very similar
B. Products are heavily differentiated
C. A few firms dominate the market
D. Consumer have limited information
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