Costs , Supply And Perfect Competition

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. The products firm offer is very similar
B. Products are heavily differentiated
C. A few firms dominate the market
D. Consumer have limited information

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

A. Price is greater than marginal cost
B. price equals marginal cost
C. price is less than marginal cost
D. None of the above

A. Horizontal
B. vertical
C. downward sloping
D. elastic

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

A. is a price taker
B. Producer different products
C. Believes that can influence price
D. Prevents the entry of competitors

A. decreasing returns to scale
B. The law of diminishing returns
C. constant returns to scale
D. an inefficient production technique

A. At their lowest points
B. When they are declining
C. When they are increasing
D. When marginal revenue is zero

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