A firm with substantial market power must be in a ____________ industry
a. monopoly or oligopoly
b. perfectly competitive
c. monopolistically competitive
d. perfectly competitive or monopolistically competitive
e. perfectly competitive or a monopoly
A
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Which of the following is not correct for an individual firm?
a. If the average variable cost (AVC) is decreasing, average total cost (ATC) must be decreasing. b. AVC reaches minimum before ATC. c. If ATC is increasing, AVC must be increasing. d. If AVC is increasing, marginal cost (MC) is increasing. e. If average fixed cost (AFC) is decreasing, ATC must be decreasing.
For identical cost conditions, the long-run equilibrium price under any form of imperfect competition is ____ than the long-run equilibrium price in perfect competition because of ____.
a. higher; perfectly elastic demand in imperfect competition. b. higher; less than perfectly elastic demand in imperfect competition. c. lower; perfectly elastic demand in imperfect competition. d. lower; less than perfectly elastic demand in imperfect competition.