Answer to Question #181958 in Microeconomics for James

Question

QUESTION 5

Perfectly competitive markets will attain long-run equilibrium when:

1. All consumers are happy.
2. All consumers are able to obtain the product.
3. Economic profits have been driven to zero.
4. All of the above.
5. None of the above. 

QUESTION 6

The perfectly competitive firm can sell any number of units:

1. If it drops the price low enough.
2. Only if it charges prices higher than its competitors.
3. At exactly the same price.
4. It chooses at the price it chooses.
5. All of the above.

QUESTION 7At higher levels of output, total cost begins to slope upward more steeply because:

1. Of diminishing marginal returns.
2. Fixed costs are increasing more rapidly.
3. Variable costs are no longer changing.
4. All of the above.
5. None of the above.  

QUESTION 8

The firm doesn’t make a profit:

1. On cloudy days.
2. When it is raining outside.
3. At any level of output.
4. At every level of output.
5. Or a tractor.

Answer 1

QUESTION 5

Perfectly competitive markets will attain long-run equilibrium when

Option 4 - All of the above.

QUESTION 6

The perfectly competitive firm can sell any number of units:

Option 3 - At exactly the same price.

QUESTION 7

At higher levels of output, the total cost begins to slope upward more steeply because:

Option 1 - Of diminishing marginal returns.

QUESTION 8

The firm doesn’t make a profit:

Option 1 - On cloudy days.