multiple choice

QUESTION 42 A perfectly competitive firm is a: price-taker. price-searcher. cost-maximizer. quantity-taker. QUESTION 43 A perfectly competitive firm is definitely earning an economic profit when: MR > MC. O P > ATC. O P > MC. O P > AVC. QUESTION 44 A perfectly competitive firm's marginal cost curve above the average variable cost curve is its: input demand curve. short-run supply curve. marginal revenue curve. total revenue curve. QUESTION 45 A perfectly competitive industry is in a state of long-run equilibrium. Which of the following must be true? O P = MR = MC > ATC. O P = MR = MC = AVC. O P = MR = MC = ATC. O P > MR = MC = AVC.QUESTION 46 A perfectly competitive industry is said to be efficient because the: O marginal cost of production of the last unit of output is minimized. 0 product is standardized across rms in the industry. 0 average total cost of production of the industry's output is minimized. \"7 market price of the good is equal to economic prot for all rms in the industry. QUESTION 47 A perfectly competitive industry with constant costs initially operates in longrun equilibrium. When demand increases, one will observe that: O in the short run, prices and prots will be higher, but in the long run, price will fall back to its original level and rms will again earn zero economic prot. (j. in the long and short runs, prices and prots will be higher relative to what they were before the demand increase. 0 in the short run, prices and prots will fall, but in the long run, price will rise back to its initial level, as will prots. 0 in the long and short runs, prices and prots will be lower relative to what they were before the demand increase. QUESTION 48 A rm's cost of production is equal to 0 its monetary outlay for inputs. 0 explicit costs. 0 the implicit cost of not renting its own resources. 0 the opportunity cost of its resources. QUESTION 49 A tangency between an isocost line and an isoquant shows 0 the maximum output attainable to a rm at a given cost. 0 the minimum cost necessary to produce a given output. 0 an input combination where the ratio of marginal products equals the ratio of the input prices. 0 all ofthe above