Practice mode / Profit Maximizing Under Perfect Competition And Monopoly If a firm has some degree of market power, then output price? A Option A: no longer influences the amount demand of the firm’s product B Option B: becomes a decision variable for the firm C Option C: is guaranteed to be above a firm’s average cost. D Option D: is determined by the actions of other firms in the industry Correct answer B. becomes a decision variable for the firm Show answer
Question 01 / Profit Maximizing Under Perfect Competition And Monopoly The cosmetics industry is not considered by economists to be a good example of perfect competition because? A Option A: there are many EU and government health controls on cosmetic products B Option B: there are a very large number of firms in the industry C Option C: firms spend a large amount of money on advertising D Option D: profit margins are very high for both producers and retailers Correct answer C. firms spend a large amount of money on advertising Show answer Open question
Question 02 / Profit Maximizing Under Perfect Competition And Monopoly If firms can neither enter nor leaves an industry, the relevant time period is the? A Option A: immediate run B Option B: intermediate run C Option C: long run D Option D: short run Correct answer D. short run Show answer Open question
Question 03 / Profit Maximizing Under Perfect Competition And Monopoly A normal rate of profit? A Option A: Is the rate of return on investments over the interest rate on risk-free government bonds. B Option B: is the rate that is just sufficient to keep owners or investors satisfied. C Option C: is the difference between total revenue and total costs D Option D: is zero in a perfectly competitive industry. Correct answer B. is the rate that is just sufficient to keep owners or investors satisfied. Show answer Open question
Question 04 / Profit Maximizing Under Perfect Competition And Monopoly Economic profits are? A Option A: the difference between total revenue and total costs. B Option B: anything greater than the normal opportunity cost of investing C Option C: the opportunity costs of all inputs D Option D: a rate of profit that is just sufficient to keep owners and investors satisfied Correct answer B. anything greater than the normal opportunity cost of investing Show answer Open question
Discussion