One characteristic of perfectly competitive markets is that individual firms O engage in product differentiation are free to enter or exit an industry in the long run earn positive economic profits in the long run O face a downward sloping demand curve O advertise to increase market share

Economic theory would suggest that the profitability of an industry would be O inversely related to the number of firms competing in the industry. O unrelated to the number of firms competing in the industry. O zero in the long run, regardless of market structure. O directly related to the number of firms competing in the industry.

Due to an increase in the price of a competitor's product, the demand for a firm's product increases sharply. How is this most likely to affect the firm's marginal revenue and marginal cost? OA. Both marginal revenue and marginal cost will increase. OB. Marginal revenue will increase but marginal cost will decrease. OC. Marginal revenue will increase but marginal cost will not change. OD. Both marginal revenue and marginal cost will not be affected. OE Marginal revenue will not change but marginal cost will increase.

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The perceived demand curve for the is Select the correct answer below: O perfectly competitive firm; also the market demand curve O perfectly competitive firm; downward sloping O monopolist; upward sloping O monopolist; also the market demand curve

Profit is the incentive that drives our market economy. Firms make production, pricing, andhiring decisions based on their quest for profit. But what happens when a firm discoversthat it can make dramatically higher profits by stopping production altogether? In December2000, due to wild swings in the market for electricity, Kaiser Aluminium faced just such adecision.Kaiser Aluminium had contracted with Bonneville power for all of its electricity needs andfound itself in the unique position of being an electricity consumer and, potentially, anelectricity reseller. By December 2000, Kaiser faced a difficult decision of continuing itscurrent aluminium production and profit levels, or closing the plant to dramatically increaseits profit by simply reselling its electricity.When making production decisions, firms must consider both their costs and revenues. Oneimportant concern for many firms is utility costs. In 1996, Kaiser Aluminium Corporation inSpokane, Washington, entered into a…

Firm MC ATC 0 Industry S The graphs suggest that in the long run, assuming no changes in the given information O the firm is in long run equilibrium earning zero economic profit so no entry or exit will take place. O buyers will leave the market. some firms will exit from this market. O new firms will be attracted into the market.

Which of the following is not a characteristic of a perfectly competitive market structure? O All firms sell identical products. O There are restrictions on exit of firms. O There are a very large number of firms that are small compared to the market. O There are no restrictions to entry by new firms.

Oscar is one of many farmers growing soybeans in the upper Midwest under purely competitive market conditions. The demand curve for Oscar's soybeans O lies above his marginal revenue curve. O is downward sloping O is perfectly inelastic O coincides with Oscar's marginal revenue curve. 21 P Gtv MacBook Pro F8 F9 吕0 S0 F3 F6 F7 F4 F5 * %23