An industry which has no barriers to entry, no product-promotion strategy, a standardized product, ...

An industry which has no barriers to entry, no product-promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:
 a. a monopoly market structure.
  b. perfect competition.
  c. monopsonistic competition.
  d. monopolistic competition.
  e. an oligopoly market structure.

QUESTION 2

If price is less than average fixed costs,
 a. the firm should operate, since it is making economic profits.
 b. the firm should operate in the short run, but it is making economic losses.
  c. the firm should shut down in the short run.
 d. We do not know whether a firm should continue operating or not.

QUESTION 3

Someone who has the desire to work but has no exceptional abilities and has not acquired the skills necessary for a well-paying job is likely to escape poverty completely.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

The supply curve of a producer, whose costs vary continuosly with output will be:
 a. a straight line vertical to the output axis.
  b. a straight line horizontal to the output axis.
  c. the positively sloped portion of the marginal cost curve.
  d. the negatively sloped portion of the marginal cost curve.

QUESTION 5

In general, the two extreme cases of market structure models are represented by:
 a. monopolistic competition and oligopoly.
  b. oligopoly and monopoly.
  c. oligopoly and perfect competition.
  d. perfect competition and monopoly.
  e. perfect monopoly and oligopolistic competition.