ECON101 Final Exam 2024 | Actual Exam Questions and Answers | Already Verified Answers

Question 1 of 20 The representative firm in a purely competitive industry: A. Will always earn a profit in the short run B. May earn either an economic profit or a loss in the long run C. Will always earn an economic profit in the long run D. Will earn an economic profit of zero in the long run AAnnsswweerr KKeeyy::: D FFeeeeddbbaacckk::: See page 240. Question 2 of 20 An example of a monopolistically competitive industry would be: A. Steel B. Soybeans C. Electricity D. Retail clothing AAnnsswweerr KKeeyy::: D FFeeeeddbbaacckk::: See page 275 - 276. Question 3 of 20 Firms in an industry will not earn long-run economic profits if: 4.45 Points 4.45 Points 4.45 Points A. Fixed costs are zero B. The number of firms in the industry is fixed C. There is free entry and exit of firms in the industry D. Production costs for a given level of output are minimized