Question

74. If a perfectly competitive firm’s marginal cost of producing and selling the 100^th unit of good X is $20 and the market price for good X is $30, then the firm will

Group of answer choices

increase its profits by producing more than 100 units of good X.

decrease its profits by producing more than 100 units of good X.

increase its profits by producing less than 100 units of good X.

maximize its profits by producing exactly 100 units of good X.

none of the above.

64.

If the tablet computer industry/market is perfectly competitive, then

Group of answer choices

economic decision-making is decentralized and all producers and consumers are price takers.

other firms (e.g., kitchen appliance makers) can easily and freely enter the tablet computer industry.

each tablet producer faces an individual demand curve that is perfectly elastic at the market price.

firms sell homogeneous (identical) table computers (there is no product differentiation).

all of the above conditions are satisfied in a perfectly competitive industry/market.

54. The SR marginal cost (MC) curve has a U - shape because the _____ cause(s) MC to decrease at “low” output levels and the _____ cause(s) MC to increase at “high” output levels.

Group of answer choices

division of labor and labor specialization based upon comparative advantage, Law of Diminishing Marginal Returns.

Law of Diminishing Marginal Returns, division of labor and labor specialization based upon comparative advantage.

Law of Supply, Law of Demand.

Law of Diminishing Marginal Utility, Law of Increasing Opportunity Cost.

short run, long run.

Answer 1

Answer-74 The correct option is increase its profits by producing more than 100 units of good X.

Answer-64 The correct option is all of the above conditions are satisfied in a perfectly competitive industry/market.

Answer-54 The correct option is Law of Diminishing Marginal Returns, division of labor and labor specialization based upon comparative advantage