(1) In a perfectly competitive industry, what mechanism that adjusts price to minimum long-run average total cost?

a.Entry and Exit

b.Diseconomies of Scale

c.Superior Management

d.Economies of Scale

(2) Which isNOT TRUEfor a profit maximizing monopolist?

a.The firm operates on the demand curve where |e|< 1

b.P > MC

c.Profit maximizing Q for the firm is determined where MC = MR

d.As Q increases, MR falls faster than Average Revenue