Which market structure can earn long-run economic profits

Correct and verified Answers are available immediately at only $19.99 (Inquire via live-chat or support@idealtermpapers.com)

 

1.The four types of market structures we study in economics are perfect competition, monopoly, oligopoly, and monopsony.

True

False

2. The long run is considered to be the period when a firm’s inputs are mainly variable and at least one input is fixed.

True

False

3. The government regulates a pure monopoly by setting price where AVC (average variable costs) = D (demand).

True

False

4. Monopolies, since no close substitutes nor competitors exist, can price whatever they want and still maximize total revenues.

True

False

5.As competition increases in markets, the demand curve for products becomes more price elastic and downward pressure on prices tends to ensue.

True

False

6. As an imperfect competitor produces more and more output, we can assume that eventually marginal costs will continue to rise and marginal revenues to fall.

True

False

7. Generally speaking, consumer surplus will be highest in a perfectly competitive market structure.

True

False

8. The point where imperfect competitors will price their products and earn the highest level of total revenues is at the midpoint of the demand curve where total revenues are highest on the total revenue curve.

True

False

9. In general, we can expect higher barriers of entry for a monopolistically competitive market structure than an oligopoly market structure

True

False

10. Monopolistic competition would represent the market structure within which Coca-Cola and Pepsi Cola firms operate.

True

False

11. The perfect competitor can produce as much as it wants or as little as it wants with no effects on market price whatsoever

True

False

12. Oligopolies and monopolies attempt reduce output and raise price, thereby incurring overcapacity and waste to society.

True

False

13. Redistribution of income from wealthier individuals to lower-income individuals by government in the form of higher taxes and progressive tax systems actually tends to lower prosperity because it weakens the link between productive activity and the reward derived from it, encourages resources to flow into wasteful rent-seeking activities, as well as higher tax rates required to finance redistribution result in resources being devoted toward tax avoidance activities.

True

False

14. Decreasing the percentage tariff price on an imported good will result in greater market share for the foreign producer in the domestic country.

True

False

15. Which market structure can earn long-run economic profits?

a.Perfect competition

b. Monopolistic competition

c.Oligopoly

d. Monopoly

e. c and d only

16. All firms produce where

a. marginal revenues are greater than or equal to marginal costs
b. average total costs are greater than marginal costs
c. marginal benefits are greater than marginal profits
d. short-run profits are less than long-run profits

17. A perfect competitor is a __________ and can earn economic profits ____________.

a. price taker, in both the short run and long run
b. price maker, in only the long run
c. price maker, never
d. price maker, in both the short run and long run
e. price taker, in only the short run

18. The upward-sloping portion of a long-run average total cost curve is the result of

economies of scale.
diseconomies of scale.
diminishing returns.
the existence of fixed resources.

19. The law of diminishing marginal returns explains the general shape of the firm’s

a. long-run cost curves.
b. the laws of diminishing returns has nothing to do with cost curves.
c. short-run cost curves.
d. both short-run and long-run cost curves

20. Which of the following labor resources will likely have the most inelastic supply schedule in the short run?

a. construction laborers
b. dentists
c. sales clerks
d. filling station attendants

21. If Congress suddenly passes legislation that required all U.S. workers to receive the same annual pay, we would expect

a. less human capital investment.
b. a shortage of workers to fill the least desirable jobs.
c. a surplus of workers to fill the easy, desirable jobs.
d. all of the above.

22. Economic profit

a. does not exist in competitive markets.
b. provides incentive for investors to undertake risky projects.
c. motivates entrepreneurial innovation.
d. does all of the above.
e. is both b and c

23. The demand curve of the perfect competitor is

a. perfectly elastic.
b. upward sloping.
c. downward sloping.
d. perfectly inelastic

24. An import tariff on an imported good will result in

a. higher domestic consumer prices for that good.
b. increased market share for the domestic producer.
c. increased revenues for the domestic government.
d. deadweight losses to society.
e. only a, b, and c.
f. a, b, c, and d.

25. A nation benefits from international trade if it

a. imports goods for which it is a low opportunity cost producer.
b. imports more than it exports.
c. exports more than it imports.
d. exports good for which it is a low opportunity cost producer

 

Correct and verified Answers are available immediately at only $19.99 (Inquire via live-chat or support@idealtermpapers.com)

Are you looking for a similar paper or any other quality academic essay? Then look no further. Our research paper writing service is what you require. Our team of experienced writers is on standby to deliver to you an original paper as per your specified instructions with zero plagiarism guaranteed. This is the perfect way you can prepare your own unique academic paper and score the grades you deserve.

Use the order calculator below and get ordering with idealtermpapers.com now! Contact our live support team for any assistance or inquiry.

Type of paper Academic level Subject area
Number of pages Paper urgency Cost per page:
 Total:

Purchase Guarantee

Why ORDER at IdealTermPapers.com?

  • Educated and experienced writers.
  • Quality, Professionalism and experience.
  • Original Content writing.
  • Best customer support.
  • Affordable Pricing on orders.
  • Thorough research.
  • Ontime delivery of finished work.
  • 100% plagiarism free papers.

Reasonable Prices

  • To get the best quality papers isn’t cheap so don’t trust extremely low prices.
  • We can’t claim that we have unreasonably low prices because low prices equal to low quality.
  • Our prices are good and they balance with the quality of our work.
  • We have a Moneyback guarantee.

Original and Quality work

  • Our writers are professionals and they write your paper from scratch and we don’t encourage copy pasting.
  • All writers are assessed and they have to pass our standards for them to work with us.
  • Plagiarism is an offence and it’s never tolerated in our company.

Native Writers plus Researchers

  • Our writers are qualified and excellent and will guarantee the best performance in your order.
  • Our team has writers who have master's and PhD qualifications who can handle any assignment
  • We have the best standards in essay writing.

We have been in business for over 7 syears

  • We have always served our customers from all over the world and they have continued to order with us.
  • We value our customers since they have trusted us to do their assignments.
  • We are competent in our writing gained from experience over the years
  • Our company has 24/7 Live Support.

You will get

  •  Custom Admission Essay written by competent professional English writers.
  •  Free revisions according to our revision policy if required
  •  Paper format:  275 words per page, Times New Roman font and size 12, doublespaced text and1 inch margin
  •  On time delivery and direct order download
  •  Privacy guaranteed

We can help you:

  •  acquire a comprehensive professional presentation.
  •  get a unique and remarkable content as per your instructions.
  •  Get an additional portion that can be included to your existing presentation;
  •  turn your work in to an eyecatching presentation with well communicated ideas.
  •  improve your presentation to acquire the best professional standards.