The fast-food industry is not considered perfectly competitive because
A. entry and exit are strictly regulated by the government.
B. there is a very large number of firms.
C. there is a small number of dominant firms.
D. the firm's products are not homogeneous.
Answer: D
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A purely competitive firm is faced with a marginal revenue curve that lies everywhere below the average variable cost curve. Would this firm be able to operate in the short run? Explain
What will be an ideal response?
Whenever marginal cost exceeds marginal revenue,
a. profit declines if the firm reduces output b. profit increases if the firm increases output c. the firm should shut down d. losses decrease if the firm increases output e. profit declines if the firm increases output
Which of the following represents the firm's long-run condition for exiting a market?
a. exit if P < MC b. exit if P < FC c. exit if P < ATC d. exit if MR < MC
Considering leverage, can you explain why a mortgage lender would want borrowers to have larger down payments, and when the borrower doesn't the mortgage lender may require mortgage insurance?
What will be an ideal response?