Marginal product of labor refers to the:
The law of diminishing returns in a manufacturing plant of a fixed capacity implies that, eventually, employing one:
More worker will decrease the average amount of output per worker
Diminishing marginal returns
$8
The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is ______.
downsloping; perfectly elastic
Refer to the short-run data. Which of the following is correct?
The MR = MC rule applies:
p2
P = ATC.
Which of the following is true concerning purely competitive industries?
Which of the following statements is correct?
Economic profits induce firms to enter an industry; losses encourage firms to leave.
Which of the following statements is correct?
of unimpeded entry to the industry.
Under what conditions would an increase in demand lead to a lower long-run equilibrium price?
The firms in the market are part of a decreasing-cost industry.
in both the short run and the long run.
P = MC.
A firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. This means the firm is:
producing less output than allocative efficiency requires.
The term productive efficiency refers to:
the production of a good at the lowest average total cost.
Which of the following conditions is true for a purely competitive firm in long-run equilibrium?
Which of the following outcomes is consistent with a purely competitive market in long-run equilibrium?
Entrepreneurs in purely competitive industries:
innovate to lower operating costs and generate short-run economic profits.
The process by which new firms and new products replace existing dominant firms and products is called:
creative destruction.
true