the long-run, firms in perfect competition and monopolistic competition charge a price that is equal to average total cost (P = ATC). Select one: O a. Therefore, firms in both industries make zero profit in the long run O b. But only firms in perfectly competitive industry generate excess capacity in the long run. O c. Therefore, firms in both industries are efficient in the long run. O d. Therefore, firms in both industries are efficient in the long run.

In the following vertical marketing system the channel members agree to cooperate with each other bounded by a contract in order to maximize profits. O a. Corporate VMS O b. Horizontal VMS O c. Contractual VMS O d. Administered VMS

Which of the following statements about the firm depicted in the diagram is true? O A. The fact that this firm is a natural monopoly is shown by the continually declining market demand curve as output rises. O B. The fact that this firm is a natural monopoly is shown by the fact that marginal cost lies below the long-run average total cost where the firm maximizes its profits. OC. The fact that this firm is a natural monopoly is shown by the continually declining marginal revenue curve as output rises. O D. The fact that this firm is a natural monopoly is shown by the long-run average total cost curve still falling when it crosses the demand curve. Price and cost per unit 905 70 59 35 20 0 MA 580 835 1,740 1,900 2,204 MC Demand ATC Quantity

Now consider any perfectly competitive market and suppose there are 'n' firms in the market in the long-run initially, but then the product becomes super-trendy and demand doubles. How many (new) firms enter the market? Whydon’t you need to know the cost and demand curves?

Which of the following explains why many small businesses struggle to compete with larger firms? O Small businesses are unable to offer the same variety of products that larger firms are able to produce. O Small businesses are unable to sell their goods at the higher prices set by larger firms. O Small businesses are unable to provide the kinds of products that consumers want. O Small businesses are unable to specialize to the degree that larger firms are able to.

PRICE Graph (a) MR QUANTITY MC ATC D PRICE Graph (b) MR QUANTITY Figure 17-4 MC ATC D Graph (c) MR QUANTITY MC ATC D Graph (d) QUANTITY Refer to Figure 16-4. Which of the graphs depicts a short-run equilibrium that will encourage the entry of other firms into a monopolistically competitive industry? O a. Graph (b) O b. Graph (d) O c. Graph (c) O d. Graph (a) MC ATC D

Quantity Price 0 20 1 18 2 16 3 14 4 12 5 10 Are the price and quantity combinations above for a perfectly competitive industry? Select one: O a. No, they are not because the demand curve should be perfectly elastic. O b. No, because the quantities are too low. O c. Yes, they are because the demand curve is downward sloping. O d. Yes, they are because the price falls the same amount for each increase in quantity. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

Figure 6.1 MC ATC AVC MR2 MR, 0. 30 40 50 60 Quantity Refer to Figure 6.1. Given MR2, what is total cost at the profit-maximizing quantity if the lowest point of the average-total-cost curve is $4? O $120 O S60.00 O$50 O $200 D 職

The marginal product of labor curve shows the change in total product resulting from a: O a. change in the cost of a variable resource. O b. one-unit increase in the quantity of a particular resource used, letting other resources vary. O c. change in the cost of a fixed resource. O d. one-unit increase in the quantity of a particular resource used, holding constant other resources. A cartel is a. a market structure with a large number of small firms. O b. another name for an oligopoly. O c. a market with only two firms. O d. a group of firms acting together to raise price, decrease output, and increase economic profit. Which of the following is a variable cost? a. None of the choices are variable costs O b. Interest payments O c. Property taxes O d. Raw materials costs

How does a commitment to match any price cuts by other firms work to limit price competition in an oligopoly? Select one: O a. Firms that cut price get no benefit in increased market share. O b. Demand decreases as consumers anticipate a price war in the future. Oc. Government regulators step in to avoid a ruinous price war. O d. Demand increases as consumers look more favorably on this industry and its products.