Multiple Choice
Free entry implies that
A) a perfectly competitive firm can never earn a profit.
B) if firms in an industry are making excessively high profits, new firms are likely to enter the industry.
C) the government regulates the number of firms that are allowed in an industry.
D) firms will always earn a profit, as new firms can enter the industry at any time they like.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: Refer to the information provided in Figure
Q3: Refer to the short-run information provided in
Q4: Marginal cost is equal to average variable
Q5: _ is the average cost of producing
Q6: Because marginal cost is always _ in
Q8: Total cost is<br>A) TFC -TVC.<br>B) TFC/TVC.<br>C) TFC
Q9: If P = MC and MC >
Q10: Labor is the only variable input for
Q11: Assume Cathy's Cupcake Company operates in a
Q12: The shut-down decision is a short-run decision.