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
Related Mcqs:
- Monopolistic competition differs from perfect competition primarily because ?
A. in monopolistic competition entry into the industry is blocked
B. in monopolistic competition there are relatively few barriers to entry.
C. in monopolistic competition, firms can differentiate their products
D. in perfect competition firms can differentiate their products - The long-run equilibrium outcomes in monopolistic competition and perfect competition are similar because in both market structures ?
A. the efficient output level will be produced in the long run
B. firms will only earn a normal profit
C. firms realize all economies of scale
D. firms will be producing at minimum average cost - Firms in perfect competition face a?
A. perfectly elastic demand curve
B. perfectly inelastic demand curve
C. perfectly elastic supply curve
D. perfectly inelastic supply curve - A profit maximizing firm is perfect competition produces where ?
A. Total revenue is maximized
B. Marginal revenue equals zero
C. Marginal revenue equals marginal cost
D. Marginal revenue equals average cost - In the long run in perfect competition ?
A. The price equals the total revenue
B. Firms are allocatively inefficient
C. Firms are productively efficient
D. The price equals total cost - 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 - In perfect competition ?
A. The price equals the marginal revenue
B. the price equals the average variable cost
C. the fixed cost equals the variable costs
D. the price equals the total cost - 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 - In perfect competition ?
A. A few firms dominate the industry
B. Firms are price makers
C. There are many buyers but few sellers
D. There are many buyers and sellers - In the long run in perfect competition ?
A. price = average cost = marginal cost
B. price = average cost = total cost
C. price = marginal cost = total cost
D. Total revenue = Total variable cost
