ECN EXAM QUESTIONS WITH
COMPLETE SOLUTIONS4
A firm operating in a monopolistically competitive markets can earn economic profits.. -
ANSWERS -In the short run but not in the long run
Monopolistic Competition differs from perfect competition because in a monopolistically
competitive market - ANSWERS -Each of the sellers offers a somewhat different product
A competitive firms short-run supply curve is a part of what curve? - ANSWERS -Marginal cost
In the long run, a firm will enter a competitive industry if... - ANSWERS -Total revenue exceeds
total cost, the price exceeds average total cost, the firm can earn economic profits.
A firm has market power if it can... - ANSWERS -Influence the market price of the good it sells
In a market with 1000 identical firms, the short-run market supply is the.. - ANSWERS -Sum of
the quantities supplied by each of the 1000 individual firms at each price
At the profit maximizing level of output.. - ANSWERS -Marginal revenue equals marginal cost
A competitive firm is currently producing a quantity of output which marginal revenue exceeds
marginal cost. In order to increase its profit, the firm should... - ANSWERS -Increase its quantity
of output
COMPLETE SOLUTIONS4
A firm operating in a monopolistically competitive markets can earn economic profits.. -
ANSWERS -In the short run but not in the long run
Monopolistic Competition differs from perfect competition because in a monopolistically
competitive market - ANSWERS -Each of the sellers offers a somewhat different product
A competitive firms short-run supply curve is a part of what curve? - ANSWERS -Marginal cost
In the long run, a firm will enter a competitive industry if... - ANSWERS -Total revenue exceeds
total cost, the price exceeds average total cost, the firm can earn economic profits.
A firm has market power if it can... - ANSWERS -Influence the market price of the good it sells
In a market with 1000 identical firms, the short-run market supply is the.. - ANSWERS -Sum of
the quantities supplied by each of the 1000 individual firms at each price
At the profit maximizing level of output.. - ANSWERS -Marginal revenue equals marginal cost
A competitive firm is currently producing a quantity of output which marginal revenue exceeds
marginal cost. In order to increase its profit, the firm should... - ANSWERS -Increase its quantity
of output
