As firms enter a perfectly competitive market, the price :

As firms enter a perfectly competitive market, the price
 
  A) falls and the existing firms' economic profits do not change.
  B) rises and the existing firms' economic profits decrease.
  C) falls and the existing firms' economic profits decrease.
  D) falls and the existing firms' economic losses do not change.

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Ques. 2

In comparison to an employer in a competitive labor market, a monopsony employer pays a ________ wage rate and hires ________ workers.
 
  A) lower; fewer
  B) lower; more
  C) higher; more
  D) higher; fewer

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Ques. 3

Computers are a complement to computer software. Suppose the price of a computer falls. Simultaneously, suppose that the number of companies selling computer software decreases.
 
  How do these changes affect the price and quantity of computer software?

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Ques. 4

If Mr. McConaughey has 7 hours to spend with friends and family and breaking a sweat, he will maximize his utility if he spends
 
  A) 2 hours with family and friends and 5 hours breaking a sweat.
  B) 5 hours with family and friends and 5 hours breaking a sweat.
  C) 4 hours with family and friends and 3 hours breaking a sweat.
  D) 3 hours with family and friends and 4 hours breaking a sweat.

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Ques. 5

Compared to a single-price monopoly, the price charged by a perfectly competitive market with the same costs
 
  A) is higher than the monopoly's price.
  B) is the same as the monopoly's price.
  C) is lower than the monopoly's price.
  D) could be higher than, lower than, or the same as the monopoly's price.

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Ques. 6

If as output increases average product increases, then ________.
 
  A) average total cost decreases
  B) average fixed cost decreases
  C) marginal cost decreases
  D) average variable cost decreases