91.Thelong-runsupplycurveforacompetitiveindustrymaybeupwardslopingif
a.therearebarrierstoentry.
b.firmsthatentertheindustryareabletodosoatloweraveragetotalcoststhantheexistingfirmsintheindustry.
c.someresourcesareavailableonlyinlimitedquantities.
d.accountingprofitsarepositive.
92.Ifallexistingfirmsandallpotentialfirmshavethesamecostcurves,therearenoinputsinlimitedquantities,andthemarketischaracterizedbyfreeentryandexit,thenthelong-runmarketsupplycurve
a.ishorizontalandequaltotheminimumoflong-runmarginalcostforeachfirm.
b.mustslopedownward.
c.mustslopeupward.
d.ishorizontalandequaltotheminimumoflong-runaveragecostforeachfirm.
93.Whenallfirmsandpotentialfirmsinamarkethavethesamecostcurves,thelong-runequilibriumofacompetitivemarketwithfreeentryandexitwillbecharacterizedbyfirms
a.earningsmallbutpositiveeconomicprofits.
b.facingtheprospectoffuturelosses.
c.operatingattheefficientscale.
d.thatworktogethertoraisemarketprices.
94.Whenentryandexitbehavioroffirmsinanindustrydoesnotaffectafirm’scoststructure,
a.thelong-runmarketsupplycurvemustbehorizontal.
b.thelong-runmarketsupplycurvemustbeupward-sloping.
c.thelong-runmarketsupplycurvemustbedownward-sloping.
d.wedonothavesufficientinformationtodeterminetheshapeofthelong-runmarketsupplycurve.
95.Whensomeresourcesusedinproductionareonlyavailableinlimitedquantities,itislikelythatthelong-runsupplycurveinacompetitivemarketis
a.downwardsloping.
b.upwardsloping.
c.horizontal.
d.vertical.
96.Whenacompetitivemarketexperiencesanincreaseindemandthatincreasesproductioncostsforexistingfirmsandpotentialnewentrants,whichofthefollowingismostlikelytoarise?
a.Thelong-runmarketsupplycurvewillbeupwardsloping.
b.Theconditionoffreeentryintothemarketwillbeviolated.
c.Producerprofitswillfallinthelongrun.
d.Thelong-runmarketsupplycurvewillbehorizontalasnewfirmsenteranddrivethepricedownward.
97.Whenfirmsinacompetitivemarkethavedifferentcosts,itislikelythat
a.freeentryandexitinthemarketwillbeviolated.
b.themarketwillnolongerbeconsideredcompetitive.
c.long-runmarketsupplywillbedownwardsloping.
d.somefirmswillearnpositiveeconomicprofitsinthelongrun.
98.Along-runsupplycurveisflatterthanashort-runsupplycurvebecause
a.firmscanenterandexitamarketmoreeasilyinthelongrunthanintheshortrun.
b.long-runsupplycurvesaresometimesdownwardsloping.
c.competitivefirmshavemorecontroloverdemandinthelongrun.
d.firmsinacompetitivemarketfaceidenticalcoststructures.
99.Amarketmighthaveanupward-slopinglong-runsupplycurveif
a.firmshavedifferentcosts.
b.consumersexercisemarketpoweroverproducers.
c.allfactorsofproductionareessentiallyavailableinunlimitedsupply.
d.theentryofnewfirmsintothemarkethasnoeffectonthecoststructureoffirmsinthemarket.
100.Whennewentrantsintoacompetitivemarkethavehighercoststhanexistingfirms,
a.accountingprofitswillbetheprimarydeterminantofentryintothemarket.
b.sunkcostsbecomeanimportantdeterminantoftheshort-runentrystrategy.
c.marketpricewillrise.
d.long-runsupplyisconstant.
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