long run-GA - Question 1 5 out of 5 points Allocative...

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Question 1 5 out of 5 points Allocative efficiency is achieved when the production of a good occurs where: Selected Answer: P = MC. Answers: P = minimum ATC. P = MC. P = minimum AVC. total revenue is equal to TFC. Question 2 5 out of 5 points The above diagram portrays: Selected Answer: the equilibrium position of a competitive firm in the long run. Answers: a competitive firm that should shut down in the short run. the equilibrium position of a competitive firm in the long run. a competitive firm that is realizing an economic profit. the loss-minimizing position of a competitive firm in the short run. Question 3 5 out of 5 points The process by which new firms and new products replace existing dominant firms and products is called:
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Selected Answer: creative destruction. Answers: monopolistic competition. mergers and acquisitions. process innovation. creative destruction. Question 4 5 out of 5 points Refer to the above diagram. Line (1) reflects a situation where resource prices: Selected Answer: increase as industry output expands. Answers: decline as industry output expands. increase as industry output expands. remain constant as industry output expands. are unaffected by the level of output in the industry. Question 5 5 out of 5 points Refer to the above diagram. At output level Q2: Selected Answer:
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resources are overallocated to this product and productive efficiency is not realized. Answers: resources are overallocated to this product and productive efficiency is not realized. resources are underallocated to this product and productive efficiency is not realized. productive efficiency is achieved, but resources are underallocated to this product. productive efficiency is achieved, but resources are overallocated to this product. Question 6 5 out of 5 points Which of the following is an example of creative destruction?
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