The key characteristic which prevents firms in a perfectly competitive industry from earning economic profits in the long run is: The absence of foreign competitors. O The absence of information regarding the price of inputs such as labor and capital. The absence of restrictions on entry and exit into or out of the industry. The absence of government regulations.

If the market demand for a product produced under perfectly competitive conditions increases (and all other market forces stay the same), the marginal revenue curve faced by the perfect competitors in the short run will   A. increase B. unknown C. remain the same D. decrease

in the long-run, firms that operate in perfectly competitive markets should expect to earn exonomic profits a. greater than $0 b. equal to $0 ( no economic profits) c.less than $0

i)

I need solution of a,b,c

Suppose a firm in a perfectly competitive industry is currently producing output at its profit-maximizing quantity. If the firm's marginal cost is less than its average total cost, MC < ATC, the firm will earn ________ profits. a.negative b.positive c.zero d.break-even

The agricultural market for corn can be characterized as a purely competitive industry. How will an increase in the cost of fertilizer that is sold to corn farmers affect the short-run costs and output for a farm in the industry? How will this affect the profit of the individual farm?

Consider our discussion on technological change. Assume for the moment that 3D printers become as cost effective as injection molding. In the long run, how does this impact firms, the industry, consumers and society? Part a) Consider the change in minimum effective scale (MES) Part b) How would the industry change Part c) How would benefit, who would be hurt?

Exhibit 8-19 Long-run perfectly competitive industry Price per unit (dollars) 25 20 15 10 5 0 5 10 B D S₁ D₁ 15 20 25 Quantity of output (thousands of units per week) 30 S₂ 35 D₂