State two characteristics of the long-run equilibrium under perfect competition.
QUESTION 2The 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 3A 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 4A 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 5Protection 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 6Why do economists prefer to use the model of perfect competition in most economic analysis?
QUESTION 7When 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 8When 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
Quick Reply
