In the long-run some firms will exit the market if the price of the good offered for sale is less than ?

A. Marginal revenue
B. Marginal cost
C. Average total cost
D. Average revenue

If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

A. Perfectly inelastic
B. Perfectly elastic
C. Upward sloping
D. Downward sloping

in long-run equilibrium in a competitive market, firms are operating at ?

A. The minimum of their average-total-cost curves
B. All of these answers are correct
C. Their efficient scale
D. Zero economic profit

In perfect competition ?

A. The price equals the marginal revenue
B. The price equals the average variable cost
C. The fixed cost equals the variable costs
D. The price equals the total cost

In the long run in perfect competition ?

A. Price = average cost = marginal cost
B. Price = average cost = total cost
C. Price = marginal cost = total cost
D. Total revenue = total variable cost

The firms long run output decision will be where ?

A. Long run average cost is lowest
B. Marginal revenue equals output
C. Marginal revenue equals long run marginal cost
D. Marginal cost equals output

The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?

A. At their lowest points
B. When they are declining
C. When they are increasing
D. When marginal revenue is zero

Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?

A. Decreasing returns to scale
B. The law of diminishing returns
C. Constant returns to scale
D. An inefficient production technique

In a competitive industry each buyer and seller ?

A. Is a price taker
B. Producer different products
C. Believes that can influence price
D. Prevents the entry of competitors

For perfect competition to work there must be ?

A. many buyers and sellers
B. a standard product
C. free entry and exit
D. perfect information