Question

Which of the following is a perfectly competitive firm?

a.	Fixer	b.	Searcher
c.	Taker	d.	Maker

Marginal revenue is defined as which of the following?

a.	The change in total revenue divided by total quantity sold	b.	The change in sales priced per unit sold
c.	The change in total revenue divided by price	d.	The change in total revenue for one additional unit sold

The result of firms entering a perfectly competitive market with increased demand is which of the following?

a.	Firms will enter until all firms earn economic profits.	b.	The price will increase.
c.	Firms will earn economic profits.	d.	Firms will enter the market until all firms earn normal profits.

After sunk costs have been incurred, firms are reluctant to ______ an industry; and before sunk costs are incurred, firms are reluctant to _____ an industry.

a.	enter; enter	b.	exit; enter
c.	enter; exit	d.	exit; exit

Answer 1