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1. The primary force encouraging the enattempt of brand-new firms into a pudepend competitive sector is:A. normal profits earned by firms currently in the market.B. economic profits earned by firms already in the sector.C. government subsidies for start-up firms.D. a desire to carry out goods for the betterment of culture.

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2. Suppose a firm in a purely competitive sector discovers that the price of its product is over its minimum AVC suggest yet almost everywhere listed below ATC. Given this, the firm:A. minimizes losses by producing at the minimum suggest of its AVC curve.B. maximizes earnings by developing where MR = ATC.C. should close down instantly.D. need to continue developing in the short run, however leave the market in the lengthy run if the instance persists.

D. have to proceed creating in the short run, but leave the market in the lengthy run if the situation persists.

3. Which of the complying with is true concerning purely competitive industries?A. Tbelow will be economic losses in the lengthy run bereason of cut-throat competition.

B. Economic earnings will certainly persist in the long run if consumer demand is strong and steady.C. In the short run, firms may incur economic losses or earn economic profits, yet in the long run they earn normal revenues.D. There are economic profits in the lengthy run, yet not in the brief run.

C. In the short run, firms may incur financial losses or earn financial revenues, yet in the long run they earn normal earnings.

4. When LCD televisions initially came on the industry, they offered for at least $1,000, and some for much even more. Now many type of systems deserve to be purchased for under $400. These facts imply that:A. the LCD television sector was once competitive, but is now monopolistic.B. fewer firms create LCD televisions than was the case five or ten years ago.C. the demand curve for LCD televisions has actually shifted leftward.D. the LCD tv industry is a decreasing-costindustry.

7. If the long-run supply curve of a pucount competitive sector slopes upward, this suggests that the prices of appropriate resources:A. will autumn as the market expands.B. are continuous as the sector increases.C. climb as the industry contracts.D. increase as the market expands

8. Allocative performance is achieved once the manufacturing of a good occurs where:A. P = minimum ATC.B. P = MC.C. P = minimum AVC.D. complete revenue is equal to TFC.

9. The term allocative efficiency refers to:A. the level of output that coincides with the intersection of the MC and AVC curves.B. minimization of the AFC in the production of any excellent.C. the manufacturing of the product-mix most desired by

10. If for a firm P = minimum ATC = MC, then:A. neither allocative efficiency nor abundant effectiveness is being achieved.B. fertile performance is being completed, however allocative effectiveness is not.C. both allocative effectiveness and productive effectiveness are being achieved.D. allocative efficiency is being accomplished, but fertile performance is not.

15. Assume that society places a higher worth on the last unit of X created than the worth of the resources provided to develop that unit. With no spillovers, this information indicates that:A. full expense is better than full revenue.B. price is better than marginal expense.

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16. If manufacturing is occurring where marginal cost exceeds price, the purely competitive firm will:A. maximize profit, however sources will certainly be underalsituated to the product.B. maximize profit, but sources will be overallocated to the product.C. fail to maximize profit and resources will certainly be overallocated to the product.D. fail to maximize profit and also sources will certainly be underalsituated to the product.

17. Which of the following problems is true for a pudepend competitive firm in long-run equilibrium?A. P > MC = minimum ATC.B. P > MC > minimum ATC.C. P = MC = minimum ATC.D. P