Biology Forums - Study Force

State two characteristics of the long-run equilibrium under perfect competition.

QUESTION 2

The world output is higher if the countries follow restrictive trade policies rather than free trade.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

A competitive firm's minimum supply price in the short run is its shutdown price.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

A price-discriminating monopolist will tend to charge a higher price to senior citizens if it believes that senior citizens:
 a. have a lower willingness to pay than other demanders.
  b. have a greater willingness to pay than other demanders.
  c. have very elastic demand curves.
 d. have horizontal demand curves.

QUESTION 5

Protection from foreign competition benefits domestic producers in the protected industry at the expense of domestic consumers.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 6

Why do economists prefer to use the model of perfect competition in most economic analysis?

QUESTION 7

When the marginal costs of firms in perfect competition increases, the short-run supply curve of the industry will shift to the left.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 8

When setting prices, the monopolist may choose to charge alternative customers different prices based on:
 a. geographical location.
  b. age.
 c. income.
 d. all of the above

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Good timing, thanks!