​Consider a firm operating in a perfectly competitive industry. At its present output of 200 units, marginal revenue is $25. At this output, average complete cost is decreasing and equals $22. Given this information, what have to the firm do?a.​More information is essential to recognize the firm"s following step.b.​Increase output beyond 200 devices, because a higher output will certainly yield the profit maximizing output level.c.​Continue to produce 200 devices, because this maximizes earnings.d.​Decrease output listed below 200 devices, given that a lower output will certainly cause the profit maximizing output level.

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In a competitive sector through similar firms,a.firms cannot earn positive economic profit in either the short run or long run.b.free entry and leave right into the market requires that firms earn zero financial profit in the lengthy run even though they might have the ability to earn positive financial profit in the short run.c.a rise in demand also in the short run will certainly bring about a brand-new price above the minimum of average full price, enabling firms to earn a positive economic profit in both the short run and the lengthy run.d.firms can earn positive financial profit in the long run if the long-run market supply curve is upward sloping.
In a competitive industry,a.the goods offered by the various sellers are unique.b.there are just a little variety of sellers.c.no single buyer or seller deserve to affect the price of the product.d.audit profit is moved to zero as firms openly enter and also exit the market.
In a perfectly competitive sector,a.no one seller can affect the price of the product.b.price exceeds marginal revenue for each unit sold.c.average revenue exceeds marginal revenue for each unit marketed.d.All of the above are correct.
The term shutdowna.and also the term departure both refer to short-run decisions that a firm might make.b.and also the term exit both refer to long-run decisions that a firm could make.c.describes a short-run decision that a firm can make, whereas the term leave refers to a long-run decision that a firm can make.d.refers to a long-run decision that a firm might make, whereas the term departure refers to a short-run decision that a firm might make.
The intersection of a firm"s marginal revenue and also marginal cost curves determines the level of output at whicha.full revenue is equal to full cost.b.total revenue is equal to variable price.c.complete revenue is equal to addressed price.d.profit is maximized.
A monopolist faces aa.horizontal demand also curve.b.U-shaped demand curve.c.vertical demand curve.d.downward-sloping demand also curve.
A government-created monopoly arises whena.federal government spfinishing in a certain market provides rise to monopoly power.b.the federal government exercises its sector regulate by encouraging competition among sellers.c.the federal government offers a firm the exclusive best to sell some good or company.d.Both a and c are correct.

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A firm that is a natural monopolya.is not most likely to be pertained to about new entrants eroding its monopoly power.b.is taking advantage of diseconomic climates of scale.c.would certainly suffer a lower average full cost if even more firms entered the market.d.All of the above are correct.
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