In the long run in perfect competition ?

Related Mcqs:

1. 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

2. 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

3. 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

4. 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

5. The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

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

6. Suppose the economy is initially in long run equilibrium Then suppose there is a drought that destroys much of the wheat crop if policymakers allow the economy to adjust to long-run equilibrium on its own, according to the model to aggregate demand and aggregate supply what happens to prices and output in the long run ?

   A. Output rises; prices are unchanged from the initial value
   B. Output and the price level are unchanged from their initial values
   C. Output falls; prices are unchanged from the initial value
   D. Prices fall; output is unchanged from its initial value

7. 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

8. 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

9. In 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

10. 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