PS08_MC - Pls hand in via WebCT ECON1001 Problem Set 8...

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Pls hand in via WebCT!!! ECON1001 Problem Set 8 ECON1001: Principles of Microeconomics (Non-major) Problem Set #8 Part I: MC Question (Reference Copy) Release Date: 2 Nov (Fri) Due Date: 5pm, 9 Nov (Fri) Note: You are ONLY allowed to answer this part in the WebCT system. The tutor DOES NOT ACCEPT other ways in handling this MC part. Part II: Short Question Please download Question & Answer sheet of this part from the tutorial website. www.econ.hku.hk/econ1001 Thank you for your cooperation.
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Pls hand in via WebCT!!! ECON1001 Problem Set 8 Q1. Smith is a corn farmer earning economic profits and Wesson is a wheat farmer receiving a normal profit. Wesson has an incentive to become a corn farmer because A) his accounting profits are negative. B) he is not currently covering his opportunity costs. C) he could earn more than his next best alternative. D) his accounting profits are zero. E) he dislikes Smith and wants to undermine Smith's profit. Q2. One difference between the long run and the short run in a perfectly competitive industry is that A) economic profits in the long run are always greater than they are in the short run. B) economic profits in the short run are always greater than they are in the long run. C) firms necessarily operate at the output level that minimizes average total cost only in the long run. D) marginal revenue equals price only in the long run. E) profits are maximized when marginal revenue equals marginal cost only in the long run. Q3.
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This note was uploaded on 10/02/2011 for the course ECON 1001 taught by Professor S.c during the Spring '10 term at HKU.

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PS08_MC - Pls hand in via WebCT ECON1001 Problem Set 8...

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