Question 1

In perfect competition,technological advances will allow economic profits for

Accepted Answer

A) all firms. 
B) only the firm developing the new technology. 
C) early adopters. 
D) none of the firms,as the advance will be immediately adopted by all of them. 
A) all firms. 
B) only the firm developing the new technology. 
C) early adopters. 
D) none of the firms,as the advance will be immediately adopted by all of them. C

Question 2

Which of the following is not a characteristic of a perfectly competitive market

Accepted Answer

A) buyers and sellers are well informed about the market 
B) standardized product 
C) many buyers and few sellers 
D) easy exit out of the industry 
E) easy entry into the industry 
A) buyers and sellers are well informed about the market 
B) standardized product 
C) many buyers and few sellers 
D) easy exit out of the industry 
E) easy entry into the industry C

Question 3

In a perfectly competitive market,a technological advance allows all firms to earn higher economic profits in the long run.

Accepted Answer

A) True 
 B)False  False

Question 4

Diminishing marginal returns are the reason why some industries have positively-sloped long-run average cost curves.

Accepted Answer

A) True 
 B)False

Question 5

One of the defining characteristics of a perfectly competitive market is

Accepted Answer

A) both buyers and sellers are well informed about the market 
B) a small number of buyers 
C) high barriers to entry 
D) a small number of buyers but a large number of sellers 
E) buyers are better informed about the market than sellers 
A) both buyers and sellers are well informed about the market 
B) a small number of buyers 
C) high barriers to entry 
D) a small number of buyers but a large number of sellers 
E) buyers are better informed about the market than sellers

In perfect competition,technological advances will allow economic profits for

Which of the following is not a characteristic of a perfectly competitive market

In a perfectly competitive market,a technological advance allows all firms to earn higher economic profits in the long run.

Diminishing marginal returns are the reason why some industries have positively-sloped long-run average cost curves.

One of the defining characteristics of a perfectly competitive market is

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters

Exam 10: B:Perfect Competition

In perfect competition,technological advances will allow economic profits for

Which of the following is not a characteristic of a perfectly competitive market

In a perfectly competitive market,a technological advance allows all firms to earn higher economic profits in the long run.

Diminishing marginal returns are the reason why some industries have positively-sloped long-run average cost curves.

One of the defining characteristics of a perfectly competitive market is

What Is Economics

Scarcity, choice, and Economic Systems

Supply and Demand

Working With Supply and Demand

Elasticity

Consumer Choice

Production and Cost

How Firms Make Decisions: Profit Maximization

Perfect Competition

Monopolistic Competition and Oligopoly

Monopoly

Labor Markets

B: Labor Markets

Capital and Financial Markets

Economic Efficiency and the Competitive Ideal

Governments Role in Economic Efficiency

Comparative Advantage and the Gains From International Trade

Filters