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a perfectly competitive firm, which of the following statement is wrong? A. It enjoys 0 profit in the long run B. It is a price taker C. It operates at P-MC D. All of the above statements are wrong

a perfectly competitive firm, which of the following statement is wrong? A. It enjoys 0 profit in the long run B. It is a price taker C. It operates at P-MC D. All of the above statements are wrong

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter11: The Firm: Production And Costs
Section: Chapter Questions
Problem 21P
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6. For a perfectly competitive firm, which of the following statement is wrong? A. It enjoys 0 profit in the long run B. It is a price taker C. It operates at P=MC D. All of the above statements are wrong 7. A firm has production function q = K²LU2+L, this firm exhibits A. increasing retum to scale B. decreasing return to scale C. constant return to scale D. depends on the amount of capital and labor 8. Which of the following statements is correct in the short run? A. The firm cannot adjust all factors of production B. The firm cannot change its cost C. The firm exhibits constant retum to scale D. The firm cannot adjust its output 9. Average cost goes up when A. marginal cost goes up B. marginal cost goes down C. marginal cost exceeds average cost D. marginal cost is lower than the average cost 10. In perfect competitive market, there is a firm with a U-shape marginal cost curve. The supply curve of this firm is given by A. The upward sloping part of the marginal cost curve, from the minimum point of marginal cost curve B. The upward sloping part of the marginal cost curve, from the minimum point of average fixed cost curve C. The upward sloping part of the marginal cost curve, from the minimum point of average variable cost curve D. The upward sloping part of the marginal cost curve, from the minimum point of average total cost curve
Transcribed Image Text:6. For a perfectly competitive firm, which of the following statement is wrong? A. It enjoys 0 profit in the long run B. It is a price taker C. It operates at P=MC D. All of the above statements are wrong 7. A firm has production function q = K²LU2+L, this firm exhibits A. increasing retum to scale B. decreasing return to scale C. constant return to scale D. depends on the amount of capital and labor 8. Which of the following statements is correct in the short run? A. The firm cannot adjust all factors of production B. The firm cannot change its cost C. The firm exhibits constant retum to scale D. The firm cannot adjust its output 9. Average cost goes up when A. marginal cost goes up B. marginal cost goes down C. marginal cost exceeds average cost D. marginal cost is lower than the average cost 10. In perfect competitive market, there is a firm with a U-shape marginal cost curve. The supply curve of this firm is given by A. The upward sloping part of the marginal cost curve, from the minimum point of marginal cost curve B. The upward sloping part of the marginal cost curve, from the minimum point of average fixed cost curve C. The upward sloping part of the marginal cost curve, from the minimum point of average variable cost curve D. The upward sloping part of the marginal cost curve, from the minimum point of average total cost curve
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