Biology Forums - Study Force

Competitive firms can earn positive profits in the
 a. Long run only
 b. Long run and the short run
  c. Short run only
 d. All of the above

QUESTION 2

_______losing bidders lead to _____winning bids
 a. Stronger; raise
 b. Weaker; reduce
 c. Stronger; raise
 d. None of the above

QUESTION 3

In a competitive industry, the competitive firm's profits are
 a. independent of the industry in which they compete
 b. closely linked to the industry in which they compete
 c. determined only by their own differentiated product
 d. determined solely by the inelastic demand for their product

QUESTION 4

Anna's Antiques expects to get three bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of 100 or a low-value of 70 with equal probability. If three bidders show up at the auction and all of them are low-value bidders, what would the winning bid be?
 a. Just above 100
  b. 100
 c. Just above 70
 d. 70

QUESTION 5

In a competitive industry
 a. firms sell more if price is above marginal cost
  b. firms sell more is price is below marginal cost
  c. firms sell less if price is above marginal cost
  d. none of the above

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