Question : 21) In the long run, perfectly competitive firms produce at : 1238769

Economics

21) In the long run, perfectly competitive firms produce at the output level that has the minimum

A) marginal cost.

B) average total cost.

C) average variable cost.

D) average fixed cost.

E) total revenue.

22) In a perfectly competitive industry,

i.entry by new firms shifts the market supply curve rightward.

ii.exit by existing firms shifts the market supply curve leftward.

iii.at all times existing firms make only zero economic profit.

A) ii and iii

B) ii only

C) i and iii

D) i and ii

E) i, ii, and iii

23) If it does not shut down, a perfectly competitive firm produces where marginal cost is equal to the marginal revenue

A) only in the short run.

B) only in the long run.

C) always to maximize its profit.

D) only if it is not possible to produce where price equals average variable cost.

E) only if it is not possible to produce where price is greater than average total cost.

24) In the long run, a perfectly competitive firm makes

A) a positive economic profit.

B) zero economic profit.

C) negative economic profit, that is, an economic loss.

D) zero accounting profit.

E) either a positive economic profit or a normal profit.

25) In the long run, a perfectly competitive firm will

A) be able to make an economic profit.

B) produce but incur an economic loss.

C) make zero economic profit.

D) not produce and will incur an economic loss equal to its total fixed cost.

E) not produce but not incur an economic loss.

26) In the long run, a perfectly competitive firm

A) can make either an economic profit or a normal profit.

B) incurs an economic loss.

C) makes zero economic profit.

D) can make an economic profit, zero economic profit, or incur an economic loss.

E) makes an economic profit.

27) The cranberry market is perfectly competitive. Reports that consuming cranberries can lead to improved health result in a permanent increase in the demand for cranberries and an immediate upward jump in the price of cranberries. As time passes, the price of cranberries ________ and the initial firms’ economic ________.

A) falls; profit will be eliminated

B) rises still higher; loss will be eliminated

C) rises still higher; profit will not change

D) falls; loss will be increased

E) falls; profit will not change

28) Suppose a perfectly competitive market is in long-run equilibrium with a price of $12. Then there is a permanent increase in demand. As a result, in the short run the market price ________ and in the long run the number of firms ________ and the price is ________ the price was in the short run.

A) rises; does not change; is equal to

B) rises; increases; higher than

C) rises; does not change; lower than

D) falls; decreases; is equal to

E) rises; increases; lower than

29) If perfectly competitive firms are maximizing their profit and are making an economic profit, the market ________ in a short-run equilibrium and ________ in a long-run equilibrium.

A) is; is

B) is; is not

C) is not; is

D) is not; is not

E) is; might be

30) A market is initially in a long-run equilibrium and there is a permanent increase in demand. After the new long-run equilibrium is reached, there

A) are more firms in the market.

B) are fewer firms in the market.

C) are the same number of firms in the market.

D) probably is a different number of firms in the market, but more information is needed to determine if the number of firms rises, falls, or perhaps does not change.

E) is no change in the market.

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July 1, 2023

1) Members of OSHA's $100,000 club have:

A) invested more than $100,000 in health and safety equipment for employees.

B) purchased health and safety insurance coverage of at least $100,000.

C) received fines of $100,000 or more for safety or health violations.

D) paid more than $100,000 in workers' compensation claims.

2) Workplace safety is a significant issue because approximately ________ employees were injured on the job in 2009.

A) 3,000,000

B) 1,000,000

C) 500,000

D) 250,000

3) According to the doctrine of contributory negligence, employers were:

A) not responsible for an employees' injury when another employee's negligence caused the injury.

B) not liable for an employee's injuries when that employee's own negligence caused the injury.

C) responsible for compensating employees for all work-related illnesses and accidents.

D) not responsible for any employees' injuries under any circumstances.

4) Workers' compensation laws vary by state, but all are built on the theory that:

A) employees' personal health insurance should pay the medical costs of any injuries.

B) work-related accidents are costs of doing business and should be paid for by employers.

C) governments are responsible for paying the medical costs related to an employee's injuries.

D) employers are not responsible for employee injuries resulting from the employee's own negligence.

5) Which of the following is a true statement about workers' compensation?

A) Workers' compensation laws are federally mandated and enforced by OSHA.

B) Non-union firms are not required to carry workers' compensation insurance.

C) Workers' compensation is not mandatory in all U.S. states.

D) Most states had workers' compensation programs by 1911.

6) Workers' compensation:

A) pays only if the worker cannot.

B) is considered a no-fault system.

C) is mandatory in all fifty states.

D) covers employees' medical costs with Medicaid.

7) The primary goal of state workers' compensation laws is best described as:

A) providing a means for injured workers to receive care and income without having to sue.

B) determining the cause of work-related accidents and minimizing future accidents.

C) ensuring that employers are not held responsible for accidents caused by worker negligence.

D) spreading the cost of workplace accidents among all workers in the state.

8) The ________ holds that employers are not held liable for an employee's injuries when the negligence of another employee contributed to or caused the accident.

A) doctrine of contributory negligence

B) fellow-servant rule

C) general duty provision

D) "no-fault" rule

9) Which of the following is most likely true?

A) Workers' compensation is a federal program. OSHA is the organization that helps individual states meet workers' compensation standards.

B) Workers' compensation is a federal program that provides compensation to employees injured on the job. OSHA is a federal program that creates and enforces safety standards in the work place.

C) OSHA is a federal program that creates safety standards for work environments. Workers' compensation programs are created by the individual states to provide compensation for employees injured on the job.

D) OSHA is a federal program that provides compensation for employees injured on the job. Workers' compensation programs are state programs that provide compensation for employees injured on the job.

10) Workers' compensation:

A) replaces the worker's entire income until he/she is able to work again.

B) provides benefits for permanent, but not temporary, impairment.

C) gives survivors burial allowances and income benefits.

D) covers medical expenses up to $100,000.