A firm should exit the industry if which of the

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A firm should exit the industry if which of the following conditions apply? TR> TCIncorrect P< AC(True Answer )Correct Lifetime expected profit is positive. Incorrect Prices are low now but expected to rise. Incorrect
1410 The decision to enter or exit an industry is based:
1411 In a constant cost industry, the market price and average cost are equal to $23. Therefore, which of the following is correct?
Reference: Ref 11-9 (Figure: Industry Firms) Refer to the figures. The market is characterized by demand curve D2and supply curve S1. The firms in the industry are earning ________, which will cause the:
1.Incorrect 1413 Figure: Industry Firms Reference: Ref 11-9 (Figure: Industry Firms) Refer to the figures. This industry is a(n):increasing cost industry. Incorrect decreasing cost industry. Incorrect constant cost industry. (True Answer )Correct quadratic cost industry. Incorrect
1414 Figure: Industry Firms
Reference: Ref 11-9 (Figure: Industry Firms) Use the figures. The market for a normal good is characterized by demand curve D2and supply curve S2. A decrease in income will cause:the demand curve to shift D1causing firms to earn economic profits. The supply curve will not change, so price will rise and firms will earn normal profits. Incorrect the supply curve to shift D1causing firms to earn economic profits. The supply curve will decrease to S1as firms exit the industry. Eventually the market price will rise and firms will earn above normal profits. Incorrect the demand curve to shift D1causing firms to earn economic losses. The supply curve will decrease to S1as firms exit the industry. Eventually the market price will rise and firms will earn normal profits. (True Answer )Correct the supply curve to shift S1causing firms to earn economic losses. The demand curve will decrease to D1as firms enter the industry. Eventually the market price will fall and firms will earn normal profits. Incorrect 1415 What condition is necessary in a constant cost industry? Prices of the industry's inputs do not change as the industry expands. (True Answer )Correct Prices of the industry's inputs decline as the industry expands. Incorrect

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