Quiz_125 - 148 _,andtheincrease _ A increase;decrease B decrease;increase C increase;increase D decrease;decrease 148 Answer D Diff:1 PageRef:422

Quiz_125 - 148 _,andtheincrease _ A increase;decrease B...

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148) A decrease in demand for organic products will ________ a firmʹs economic profit, and the increasein costs to produce organic produce will ________ a firmʹs economic profit. A) increase; decreaseB) decrease; increaseC) increase; increaseD) decrease; decreaseAnswer: D 148) Diff: 1 Page Ref: 422 - 423/422 - 423 Topic: Profit Learning Outcome: Micro 9: Discuss the fundamental characteristics of firms AACSB: Analytic Skills TRUE/FALSE. Write ʹ T ʹ if the statement is true and ʹ F ʹ if the statement is false. 149) If a firm in a perfectly competitive industry introduces a lower - cost way of producing an existing product, the firm will be able to earn economic profits in the long run. 149) Answer: True False Diff: 2 Page Ref: 418/418 Topic: Productive Efficiency Learning Outcome: Micro 13: Explain the relationship between production and profits under perfect competition AACSB: Reflective Thinking 150) Firms in perfect competition produce the productively efficient output level in the short run and in the long run. 150) Answer: True False Diff: 2 Page Ref: 418/418 Topic: Productive Efficiency Learning Outcome: Micro 13: Explain the relationship between production and profits under perfect competition AACSB: Analytic Skills 151) Firms in perfect competition produce the allocatively efficient output in the short run and in the long run. 151) Answer: True False Diff: 2 Page Ref: 420/420 Topic: Allocative Efficiency Learning Outcome: Micro 19: Explain the concept of efficiency in the economy and obstacles to achieving it AACSB: Analytic Skills ESSAY. Write your answer in the space provided or on a separate sheet of paper. 152) What is meant by productive efficiency? How does a perfectly competitive firm achieve productive efficiency?
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