Microeconomics_Milestone_With_Answers.

Microeconomics_Milestone_With_Answers. Which of the following describes an industry that experiences economies of scale, even at high levels of output? Monopolistic competition Perfectly competitive industry Natural monopoly Oligopoly CONCEPT Constant, Increasing and Decreasing Cost Industries 2 If the market price of apples drops to $9, at which of the following will the firm be? Below the shutdown point Making a profit Just breaking even Operating at a short term loss At the shutdown point CONCEPT Breakeven Point 3 Which of the following market structures has only one seller, who acts as a price maker? Monopolistic competition Oligopoly Monopoly Perfect competition CONCEPT Monopoly 4 Which of the following is why the long run average cost curve must lie at the same level or below any short run average cost curve? Because in the long run, a firm will generally operate at higher per-unit cost than in the short run Because of economies of scale Because of the law of diminishing returns Because in the long run, all production costs are variable CONCEPT Long-Run Supply Curve 5 Determine which statement below applies when income goes down.