Profit Maximizing Under Perfect Competition And Monopoly

A. entry to it is costly but exit from it is costless
B. entry to it and exit from it are both costless
C. entry to it and exit from it are both costly
D. entry to ti costless but exist from it is costly

A. a fixed cost monopoly
B. a natural monopoly
C. a government franchise monopoly
D. a economies of scale monopoly

A. lower than price for all units other than the first
B. less than price at low levels of output and greater than price at high levels of output
C. always greater than price
D. always equal to price

A. approximately one-half
B. smaller than
C. larger than
D. approximately equal to

A. normal profit is zero
B. total costs exceed total revenue
C. total costs exceed normal profit
D. the firm is earning are economic profit

A. all firms must make economic profits.
B. there are no fixed factors of production
C. a firm can vary all inputs, but it cannot change the mix of inputs it uses.
D. a firm can shut down, but it cannot exit the industry

A. a period where the law of diminishing returns does not hold.
B. at least one fixed factor of production and firms neither leaving nor entering the industry
C. all inputs being variable
D. no variable inputs – that is all of the factors of production are fixed

A. Produces less output, charges higher prices and earns economic profits.
B. Produces less output, charges lower prices and earns only a normal profit
C. produces more output, charges higher prices and earns economics profits
D. produces less output, charges lower prices and earns economic profits

A. more; more
B. fewer; less
C. more; less
D. no; infinite

A. how much to spend on advertising?
B. how much of each input to use?
C. What price to charge
D. none of these