INSTRUCTIONS: Select the BEST answer for each question by marking the circle next to your selection Show
This is the end of the test. When you have completed all the questions and reviewed your answers, press the button below to grade the test. When a competitive firm produces output up to the point at which?Answer and Explanation: The competitive firm maximizes profit when it produces output up to the point where marginal cost equals marginal revenue.
When a purely competitive industry is in long run equilibrium Which statement is true?Answer and Explanation: When a competitive industry is in the long-run equilibrium, the economic profit for each firm is equal to zero.
Which of the following statements applies to a purely competitive producer?Answer and Explanation: The correct option is c) Its product will have a brand name: Producers under the perfect competition try to build a brand name for their product, and some even succeed in doing so.
Which of the following outcomes is consistent with a purely competitive market in the long run equilibrium?Which of the following outcomes is consistent with a purely competitive market in long-run equilibrium? consumer and producer surplus will be maximized. Entrepreneurs in purely competitive industries: innovate to lower operating costs and generate short-run economic profits.
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