Question

are making an economic Today, firms in a perfectly competitive market run, firms will profit. In the long firns in a perfectly competitive market are making the market until all firms in the market onomic e) exit, producing at the minimum point on their long-run average cost d) a) exit; covering only their total fixed costs b) enter, making zero economic profit enter, making zero normal profit an economic profit when new firms enter 46. The firms in a perfectly competitive are making an economic profit The entry shifts the market supply curve firm's economic profit a) leftward; rises; decreases b) rightward; rises; increases c) rightward; falls; decreases d) leftward; falls; decreases 47. An industry in which economies of scale allow one firm to supply the entire market at the lowest possible cost is called a a) legal monopoly b) natural monopoly. c) single-price monopoly d) one-firm monopoly. 48. Total revenue equals a) marginal revenue multiplied by quantity sold b) price multiplied by quantity sold c) total cost minus profit. d) the area between the demand curve and the marginal revenue curve. Quantity (units) (dollars per unit) Price 16 12 6 49. The table above gives the demand for a monopolist's output. What is the marginal revenue of increasing production from 4 to 5 units? a) $70 b) $16 c) $14 d) $6