Econ 455 Chapter 9

question

In the long run, which of the following is most likely for a firm?

answer

zero accounting profits but positive accounting profits

question

At the individual firm level, which of the following types of firms faces a downward sloping demand curve?

answer

both a perfectly competitive firm and a monopoly firm

question

Which of the following types of firms are guaranteed to make positive economic profit?

answer

a monopoly firm but not a perfectly competitive firm

question

What is the difference between a competitive firm and a monopoly firm?

answer

monopoly firms can generally earn positive profits over a longer period of time

question

Which of the products below is closest to operating in a perfectly competitive industry?

answer

cotton

question

A firm in a perfectly competitive market faces what type of demand curve?

answer

perfectly elastic

question

A competitive firm's profit-maximizing price is $15. At MC=MR, the output is 100 units. At this level of production, average total costs are $12. The firm's profits are

answer

300 in the short and zero in the long run

question

What would happen to revenues if a firm in a perfectly competitive industry raised price?

answer

Revenues would fall

question

If a firm in a perfectly competitive industry is experiencing average revenues greater than average costs, in the long run

answer

some firms will enter the industry and price will fall

question

A sudden decrease in the market demand in a competitive industry leads to

answer

losses in the short run and average profits in the long run

1 of 10

question

In the long run, which of the following is most likely for a firm?

answer

zero accounting profits but positive accounting profits

question

At the individual firm level, which of the following types of firms faces a downward sloping demand curve?

answer

both a perfectly competitive firm and a monopoly firm

question

Which of the following types of firms are guaranteed to make positive economic profit?

answer

a monopoly firm but not a perfectly competitive firm

question

What is the difference between a competitive firm and a monopoly firm?

answer

monopoly firms can generally earn positive profits over a longer period of time

question

Which of the products below is closest to operating in a perfectly competitive industry?

answer

cotton

question

A firm in a perfectly competitive market faces what type of demand curve?

answer

perfectly elastic

question

A competitive firm's profit-maximizing price is $15. At MC=MR, the output is 100 units. At this level of production, average total costs are $12. The firm's profits are

answer

300 in the short and zero in the long run

question

What would happen to revenues if a firm in a perfectly competitive industry raised price?

answer

Revenues would fall

question

If a firm in a perfectly competitive industry is experiencing average revenues greater than average costs, in the long run

answer

some firms will enter the industry and price will fall

question

A sudden decrease in the market demand in a competitive industry leads to

answer

losses in the short run and average profits in the long run

Continue to order Get a quote

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Econ 455 Chapter 9

Recent Posts

Recent Comments

Calculate the price of your order

Our guarantees

Money-back guarantee

Zero-plagiarism guarantee

Free-revision policy

Privacy policy

Fair-cooperation guarantee