A.   total economic profit curve.

B.   long-run average cost curve.

C.   marginal cost curve.

D.   marginal revenue curve.

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

B.   until all loss making firms leaves the industry.

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

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

A.   homogeneous products.

B.   free entry and exit.

C.   firms facing horizontal demand curves.

D.   few sellers.

A.   a few large firms

B.   firms producing specialized products in order to attract consumers

C.   a large number of small firms

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

A.   Firms advertise to increase their market share.

B.   Consumers pay little attention to brand names.

C.   Profits are low.

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

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

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

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

D.   always falls.

A.   contract for labor services.

B.   All of these are correct.

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

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

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

A.   leader.

B.   giver.

C.   maker.

D.   taker.

A.   marginal revenue equals marginal costs.

B.   average revenue equals variable costs.

C.   total revenue exceeds total costs.

D.   total revenue exceeds variable 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.