Diff 3 Page Ref 413 415413 415 Topic Long Run Equilibrium Learning Outcome

Diff 3 page ref 413 415413 415 topic long run

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Diff: 3Page Ref: 413-415/413-415Topic: Long-Run EquilibriumLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Analytic Skills116) In long-run perfectly competitive equilibrium, which of the following isfalse?A) Economies of scale are exhausted.B) There is efficient, low-cost production at the minimum efficient scale.C) Firms earn economic profit.D) Economic surplus is maximized.Answer: C116)Diff: 2Page Ref: 413/413Topic: Long-Run EquilibriumLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Reflective Thinking36
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Figure 12-10117)Refer to Figure 12-10.Consider a typical firm in a perfectly competitive industry which isincurring short-run losses. Which of the diagrams in the figure shows the effect on the industry asit transitions to a long-run equilibrium?117)Diff: 3Page Ref: 414/414Topic: Long-Run EquilibriumLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Analytic Skills118) If in a perfectly competitive industry, the market price facing a firm is below its average total costbut above average variable cost at the output where marginal cost equals marginal revenue118)Diff: 2Page Ref: 413/413Topic: Entry and ExitLearning Outcome: Micro 13: Explain the relationship between production and profits under perfectcompetitionAACSB: Reflective Thinking37
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Figure 12-11
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  • Spring '11
  • Lee
  • Economics, AACSB, Page Ref, long-run equilibrium, Nontotient, Typical Firm

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