Answer the following statements true (T) or false (F)

1. In perfect competition, if the market price is at the same level as the minimum point of the firm’s average total cost curve, the best the firm can hope for is to break even.
2. If new firms enter a perfectly competitive industry, the market price of the finished product will rise.
3. An increase in market demand for a product can raise the MR for a firm in perfect competition.
4. Under perfect competition in the short run, profits among firms can differ if some firms use their resources more efficiently.
5. Since all producers have the same average revenue under conditions of perfect competition, they all have the same profits in the short run.


1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE

Economics

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One reason the colonials complained about the Navigation Acts was

(a) the "shortage" of money; they believed the trade deficits of the colonies were bleeding them of coins. (b) the "surplus" of money that was causing inflation; they believed the trade deficits were flooding the colonies with coins. (c) the Acts' not allowing foreign coins, which created a "shortage" of foreign coins relative to British coins. (d) the Acts' requirement that only paper money would circulate in the colonies, without the backing of gold.

Economics

Suppose a company wanted to try to improve the health of its workers as part of its health initiative program. When constructing a new building, it decides to put the elevators significantly farther than the stairs from the main entrance. This would be considered as an example of a(n):

A. push. B. irrational behavior. C. laissez-faire policy. D. nudge.

Economics

The person responsible for beginning to privatize China's economy since the mid-1970s is

A. Deng Xiaoping. B. Mao Tse-tung. C. Sun Yat-sen. D. Chiang Kai-shek.

Economics

Tariffs to limit imports to "protect U.S. jobs" will also

A) stimulate exports. B) limit exports. C) decrease import prices. D) reduce domestic production of import-threatened products.

Economics