Suppose a perfectly competitive market is in a short-run equilibrium. If some firms exit the market, the profit of the remaining firms ________; if some firms enter the market, the profit of each existing firm ________
A) decreases; is unchanged
B) increases; decreases
C) increases; is unchanged
D) is unchanged; is unchanged
E) decreases; increases
B
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In order to maximize the net gains from an activity, a Maeva should choose the quantity at which the marginal:
a. benefit exceeds the marginal cost by the greatest amount. b. benefit is zero. c. benefit is equal to the marginal cost. d. cost is lowest
Perfectly competitive firms and monopolists are different because
a. in perfect competition MC = P, while a monopolist produces where P > MC. b. in perfect competition MC = P, while a monopolist produces where MC > P. c. in perfect competition P > MC, while a monopolist produces where MC = P. d. in perfect competition MC > P, while a monopolist produces where MC = P.