Imagine two firms with identical cost structures that do not exhibit economies of scale at high levels of production. One is competing in a perfectly competitive market and one is a monopoly. In the long run which of the following is true?Group of answer choicesThe monopoly will charge a higher price than the perfectly competitive firmThe monopoly and the perfectly competitive firm will produce the same quantityThe monopoly and the perfectly competitive firm will charge the same priceThe monopoly will sell a higher quantity than the perfectly competitive firm

In long-run perfectly competitive equilibrium, which of the following is false?Group of answer choicesThere is efficient, low-cost production at the minimum efficient scale.Economic surplus is maximised.Firms earn economic profit.Economies of scale are exhausted.

Consider 2 identical firms that face the same costs of production. One firm operates in a perfectly competitive market while the other firm operates in a monopolistically competitive market; both markets have the same total demand for a good. Which of the following statements apply are true, or apply to both types of firms? [Tick all that apply] [Reminder: selecting wrong answers means you lose points. Choose carefully!] Group of answer choices In the short run, both firms supply the same profit-maximising quantity. Both firms face a downward-sloping demand curve for their good. Both firms expect to earn zero economic profits in the long run. Both firms are price-takers. If the firm makes positive economic profits, new firms will enter the market which drives profits down to zero. If there are economic profits, new firms enter the market leading to a decrease in demand for the existing firms.

Which of the following is NOT true regarding perfectly competitive markets?Group of answer choicesIt is difficult or impossible for a firm to enter and compete in the marketAll firms in the market are price takersHomogenous goods are sold by the firmsThe market contains many buyers and sellers

Which of the following is true about a monopolistically competitive firm?Group of answer choicesIt can earn an economic profit in the short run, but not the long run.It can earn an economic profit in the short run and the long run.It can earn an economic profit in the long run, but not the short run.It cannot earn a economic profit in either the short or long run.

Which of the following statements apply to a perfectly competitive market