Which of the following best describes the perfectly competitive firm in the short run?Multiple choice question.It has a fixed plant and can only adjust output through changes in fixed resourcesIt has a fixed plant and can only adjust output through changes in variable resourcesIt has a variable plant and can only adjust output through changes in fixed resourcesIt has a fixed plant and can only adjust output through changes in capital resources

Firms that operate in a perfectly competitive industry __.Multiple choice question.make long-run or normal profitsdifferentiate their productsdo not differentiate their productsnever incur short-run profits

In a perfectly competitive market, marginal resource cost faced by any one firm:A.is fixed, because any one firm is too small to influence the price of the factor.B.decreases as the level of output by the firm decreases, since the firm uses less of the resource.C.is fixed, but is unrelated to the price of the factor.D.increases as the level of output by the firm decreases, since the firm uses less of the resource.E.is fixed, because the price of a factor is unchangeable.

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.

a. Consider the statement: “Even if a firm is losing money, it may be better to stay in business in the short run.” This statement ismultiple choice 1true, if the loss is less than the fixed cost.true, if the loss is less than the variable cost.false, because it could be better to stay in business in the long run.false, because a firm should only stay in business if it is making money.b. The firm should produce in the short run as long as the pricemultiple choice 2exceeds the average fixed cost.exceeds the average variable cost.is less than the average variable cost.is less than the average fixed cost.

Which of the following goes closest to fitting the economist's model of perfect competition?Question 1Select one:a.The only hotel in a small country town.b.A Suburban law firm.c.A city-based firm of management consultants.d.A house cleaning business.Clear my choiceQuestion 2Not yet answeredMarked out of 1.00Flag questionTipsQuestion textIf a perfectly competitive firm sells 40 units of output at a market price of $380 per unit, its marginal revenue per unit is: ....Question 2Select one:a.$380b.$95c.$9.50d.more than $95, but less than $380Clear my choiceQuestion 3Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWhich of the following are the same at all levels of output under perfect competition?Question 3Select one:a.Marginal cost and marginal revenue.b.Price and marginal cost.c.Price and marginal revenue.d.None of the answers provided are correct.Clear my choiceQuestion 4Not yet answeredMarked out of 1.00Flag questionTipsQuestion textA perfectly competitive firm's supply curve follows the upward-sloping segment of its marginal cost curve above the .................Question 4Select one:a.average variable cost curve.b.average price curve.c.average fixed cost curve. d.average total cost curve.Clear my choiceQuestion 5Not yet answeredMarked out of 1.00Flag questionTipsQuestion textWASHDOG is a perfectly competitive firm that washes dogs in Perth. It sells its service for $75 per dog. Its minimum average variable cost is $76 per unit. The firm should: .....Question 5Select one:a.shut down.b.maintain its current rate of output.c.increase output.d.decrease output, but not shut down.