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Which of the following statements is true The marginal entrant in a market earns

Which of the following statements is true?

A) The marginal entrant in a market earns the highest profit.

B) The marginal entrant has the lowest cost among all firms in the market.

C) Difference in technology and experience can lead to firms having non-identical costs even under perfect competition.

D) In a market which has identical cost structures for all firms, there is possibility of positive economic profits in both the short run and the long run.

3) In a competitive industry where different firms have different cost structures, the industry supply curve is:

A) upward sloping.

B) downward sloping.

C) vertical.

D) horizontal.

4) In a competitive industry some firms earn positive economic profits while some earn zero economic profit in the long run because:

A) there exist free entry and exit of firms.

B) the firms have different cost structures.

C) the firms sell their output at different prices.

D) the industry supply curve is perfectly elastic.

5) Which of the following statements is true of the short run?

A) Identical firms can enjoy positive economic profits.

B) Identical firms face a downward sloping supply curve.

C) Non-identical firms face a downward sloping supply curve.

D) Non-identical firms cannot enjoy positive economic profits.

6) Which of the following statements is true of the long run?

A) Identical firms can enjoy positive economic profits.

B) Identical firms face an upward sloping supply curve.

C) Non-identical firms can enjoy positive economic profits.

D) Non-identical firms face a horizontal supply curve.

Mar 14 2020 View more View Less

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