Intro to Long-run Perf Comp

Intro to Long-run Perf Comp

University

6 Qs

quiz-placeholder

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Intro to Long-run Perf Comp

Intro to Long-run Perf Comp

Assessment

Quiz

Social Studies

University

Hard

Created by

Bekah Selby

FREE Resource

6 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

An increase in demand has caused perfectly competitive firms to make profit in the long-run. What will happen?

New firms enter and prices will decrease until all firms break even

New firms enter and prices will increase until all firms break even

Some firms will exit and prices will increase until all firms break even

Some firms will exit and prices will decrease until all firms break even

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the long-run, perfectly competitive firms cannot incur losses.

True

False

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Industries where increasing production volume does not affect costs per unit is called

Increasing Cost Industry

Constant Cost Industry

Flat Cost Industry

Horizontal Cost Industry

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

In the long-run, price per restaurant meal to expected to increase as incomes go up. What will happen?

New firms enter

Some firms exit

Nothing changes

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If I own a perfectly competitive business and I double my production, I can expect my cost per unit to decrease. This is called:

Economies of scale

Diseconomies of scale

Constant returns to scale

Improvements in scale

6.

DRAW QUESTION

3 mins • 1 pt

Draw an example of a long-run average cost curve that has economies of scale.

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