Question

1. (Choose the best answer) In the long run a company will A. Exit the market...

1. (Choose the best answer) In the long run a company will

A. Exit the market if price is below ATC

B. Enter the market if price is below AVC

C. Shutdown temporarily if price is below ATC

D. Shutdown temporarily if price is below AVC

2. In a competitive market which is true

A. p=mr=ar

B. p>mr

C. p<mr

D. p>ar

3. Patent and copyright laws are major sources of

A. government-created monopolies.

B. natural monopolies.

C. resource monopolies.

D. antitrust regulation.

4. Which is true in a monopoly

A. p>mc

B. p=mc

C. mr>mc

D. p<mr

Homework Answers

Answer #1

1) Answer is A.

In long run if price is below ATC firm have to exit the industry because firm will be facing losses and can not sustain in long run with losses. in short run firm may continue if prices are above AVC. If price is less than AVC, firm will shut down temporarily in short run.

2) Answer is A. Price = MR = AR.

In perfect competition price , marginal revenue and average revenue will be equal all the time.

3) Answer is A. Government created monopolies.

Because government gives patents and copyrights and other companies can not produce those goods in which patents are issued. So it creates monopoly.

4) Answer is A. Price > Marginal cost

For monopolist price will be higher than both marginal revenue and marginal cost. And marginal cost and marginal revenue will be equal at profit maximising output.

#Please rate positively...thank you

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Define and Compute Sr shut down and breakeven price, identify the short run supply curve...
1. Define and Compute Sr shut down and breakeven price, identify the short run supply curve of the firm. 2. Competitive Firm Equilibrium Long run, Exit/Entry in Long Run, Explain why a competitive firm can only earn normal economic profit (define) in long run. 3. Define monopoly, explain why the MR and P( AR) curve for a monopolist are different and why they are downward sloping and why does MR lie below the AR curve. Compute Monopoly P and Q...
In the short run, a firm will produce as long as the price is greater than...
In the short run, a firm will produce as long as the price is greater than its: A. MR. B. MC. C. ATC. D. AVC.
21. A competitive market has all of the following characteristics except a. The buyers and sellers...
21. A competitive market has all of the following characteristics except a. The buyers and sellers are price makers b. Firms can freely enter and exit the market c. There are many buyers and sellers in the market d. Goods offered by the sellers are very similar 23. The firm shuts down if the revenue it would earn from producing is less than its variable costs of production a. true b. false 26. In the long run, the competitive firm...
Sally's rocket store is experiencing fierce competition in a perfectly competitive market. The market price for...
Sally's rocket store is experiencing fierce competition in a perfectly competitive market. The market price for a rocket is less than her ATC of producing the profit maximizing quantity, but greater than AVC. Sally should: a.) Produce in the short run, and produce in the long run. b.) Produce in the short run, and exit in the long run. c.) Shutdown in the short run, and produce in the long run. d.) Shutdown in the short run, and exit in...
16) In the short-run cost analysis, when a firm’s marginal cost (MC) is unavailable, the best...
16) In the short-run cost analysis, when a firm’s marginal cost (MC) is unavailable, the best alternative of MC is its a) average total cost (ATC) b) average fixed cost (AFC) c) total variable cost (TVC) d) average variable cost (AVC) 19) Which of the following is NOT a market characteristic for monopoly? a) One firm is the only supplier of a product. b) Entry into the market is blocked. c) The firm can influence market price though output decision-making....
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises...
1. Compared with a perfectively competitive market a monopoly is inefficient because                    a. it raises the market price above marginal cost and produces a smaller output.             b. it produces a greater output but charges a lower price.             c. it produces the same quantity while charging a higher price.             d. all surplus goes to the producer.             e. it leads to a smaller producer surplus but greater consumer surplus. 2. The demand curve of a monopolist typically...
Which of the following statements about a firm in long−run equilibrium is true? A. P >...
Which of the following statements about a firm in long−run equilibrium is true? A. P > MC for a firm in monopolistic competition and P = ATC for a firm in perfect competition B. MR > P for a firm in monopolistic competition and P = ATC for a firm in perfect competition C. P = MC for a firm in perfect competition and P < ATC for a firm in monopolistic competition D. P = MC for firms in...
In a long-run equilibrium in a perfect competitive market, which of the following is true? (Suppose...
In a long-run equilibrium in a perfect competitive market, which of the following is true? (Suppose all firms have identical cost curves) A Economic profit may be negative B P=ATC C P=AVC D Accounting profit may be negative
A perfectly competitive firm’s total cost is TC = 25 + 0.5Q2. The firm can sell...
A perfectly competitive firm’s total cost is TC = 25 + 0.5Q2. The firm can sell as much as it wants at a market determined price of $50. What will happen if there are no barriers to entry? a. Firms will enter the industry. b. Firms will exit the industry. c. Firms will neither enter nor exit the industry. d. The firm will shut down. e. None of the above. Which of the following is true for a monopoly? a....
31. If a firm can influence the market price by changing its quantity of output, then...
31. If a firm can influence the market price by changing its quantity of output, then the firm. a. must be a monopoly b. has market power c. will set the price equal to its average total costs d. earns a normal profit in both short-run and long-run 34. A firm will shutdown in the short-run if a. it makes a negative profit. b. the market price is lower than its average total cost (ATC). c. the market price is...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT