Answer the following statement(s) true (T) or false (F)
1. A competitive firm will exit an industry in the long run if the market price falls below the firm's break-even price.
2. For a competitive firm with a downward sloping marginal cost curve, the supply curve and the marginal cost curve look exactly the same
3. There is no reason for a competitive firm to stay in business if it is making zero economic profit.
4. A decrease in firms’ variable costs will cause the output of the market to decrease.
5. A technological advance that reduces firms’ variable costs will lead to higher profits in the long run of a perfectly competitive industry.
1. True
2. False
3. False
4. False
5. False
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Total utility is the benefit received from consuming an extra unit of a good
Indicate whether the statement is true or false
The period of time from 1,000,000 B.C. to 1300 A.D. was a period of
A) moderate economic growth. B) rapid and sustained economic growth. C) no sustained economic growth. D) slow and steady economic growth.
When there are significant costs involved with coordinating a private solution to an externality:
A. a leader will likely be elected to organize the coordination. B. it can act as a motivating factor to solve the externality problem expediently. C. it likely will not happen. D. None of these statements is true.
Politicians are often heard saying that tuition at state universities should be kept low "to make education equally accessible to all residents of the state, regardless of income." Assuming that state funding for the universities is held constant, what condition will prevail if tuition is held below equilibrium price? Will education really be "equally accessible" under these conditions?
What will be an ideal response?