Answer to Question #181969 in Macroeconomics for James Achilefu

Question

QUESTION 19

The combination of many firms entering or exiting a perfectly competitive market:

1. Will affect overall supply in the market.
2. Will not impact the overall supply in the market.
3. Will cause an increase in the demand for their products.
4. Will cause a decrease in demand for their products.
5. Will never cause the overall supply in that market to fall.

QUESTION 20

In the long run, the process of entry into a perfectly competitive market:

1. Is continuous.
2. Is impossible.
3. Will push down prices until they reach the zero-profit level.
4. Will push down prices only until the largest firms begin losing profits.
5. Will push prices up until they reach the zero-profit level.

QUESTION 21

Agricultural markets are generally good examples of:

1. Monopoly.
2. Oligopoly.
3. Variable-cost industries.
4. Constant-cost industries.
5. A decreasing-cost market.

QUESTION 22

High tech industries may be a good example of:

1. Monopoly.
2. Oligopoly.
3. Variable-cost industries.
4. Constant-cost industries.
5. A decreasing-cost market.

Answer 1

The combination of many firms entering or exiting a perfectly competitive market:

1. Will affect overall supply in the market.

In the long run, the process of entry into a perfectly competitive market:

3.Will push down prices until they reach the zero-profit level.

Agricultural markets are generally good examples of:

3.Variable-cost industries.

High tech industries may be a good example of:

4. Constant-cost industries.