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Unformatted text preview: differentiated products. 9. In a perfectly competitive industry for each firm: price equals marginal revenue. 10. In a perfectly competitive industry a firm faces a demand curve that is: a. vertical. b. very steep c. upward sloping. d. none of the above. Short Answer: a.) Discuss, briefly, the short and long run equilibrium of a perfectly competitive firm. b.) Show, graphically, a short run profit maximizing perfect competitor who breaks even. True or False and Explain Answer: a.) In the short run, a profit maximizing firm will shut down if TF < T Loss. b.) In the long run a profit maximizing monopolist earns zero economic profits. c.) A monopolist can charge a price as high as he wants....
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- Fall '07