A firm in a perfectly competitive industry
A. is unaffected by the entrance of new firms into the industry, since entering firms affect only the prices they themselves receive.
B. always produces more output in the long run than in the short run.
C. may choose a different output in the long run than in the short run.
D. earns economic profit in the long run but not in the short run.
Answer: C
You might also like to view...
Define a tit-for-tat strategy
What will be an ideal response?
American companies can borrow funds
A) only in U.S. financial markets. B) only in foreign financial markets. C) in both U.S. and foreign financial markets. D) only from the U.S. government.
Which of the following statements about the real goods market is not true?
a. Among the most important factors influencing the shape of the aggregate supply curve is the nation's rate of resource utilization. b. Among the key indicators that provide clues about where a nation is on its aggregate supply curve is the unemployment rate. c. If the nation were near the Keynesian range, a strong increase in real GDP would be accompanied by relatively weak rise in the price index. d. In the Classical range, a significant increase in real GDP is accompanied by a relatively small increase in the price index. e. All of the above are true.
As a result of increasing its workforce from 9 workers to 10 workers, a firm's total revenue per day increases from $60,000 to $60,250 and its total cost per day increases from $58,500 to $58,700 . The marginal profit of the 10th worker is
a. -$50. b. $50. c. $200. d. $250.