A.   marginal revenue curve.

B.   long-run average cost curve.

C.   total economic profit curve.

D.   marginal cost curve.

A.   until price becomes tangent to the long run average cost curve.

B.   until all loss making firms leaves the industry.

C.   until each firm can earn acceptable level of economic profit.

D.   until the long average cost curve rises above the demand curve.

A.   firms facing horizontal demand curves.

B.   homogeneous products.

C.   free entry and exit.

D.   few sellers.

A.   a large number of small firms

B.   firms producing specialized products in order to attract consumers

C.   a few large firms

D.   each individual firm having some control over the market price

A.   Consumers pay little attention to brand names.

B.   Profits are low.

C.   Firms advertise to increase their market share.

D.   Firms pay no attention to their competitors' output levels.

A.   falls only if existing firms gang up on the entrant.

B.   falls only if existing firms are earning no economic profit.

C.   falls only if the new firm is more efficient than existing firms.

D.   always falls.

A.   All of these are correct.

B.   contract for labor services.

C.   lease agreement on real estate.

D.   purchasing machinery.

A.   appropriate course of action for government is to increase R&D outlays to develop technology to remove the emissions from the environment.

B.   appropriate course of action for government is to do nothing.

C.   most effective policy action would be a tax on polluting firms.

D.   most effective policy action would be a subsidy to firms for the reduction of emissions.

A.   taker.

B.   maker.

C.   leader.

D.   giver.

A.   total revenue exceeds variable costs.

B.   marginal revenue equals marginal costs.

C.   average revenue equals variable costs.

D.   total revenue exceeds total costs.

A.   always earns a profit.

B.   may earn a profit or a loss.

C.   never earns a profit.

D.   earns a profit only if the firm has no fixed costs.