Make normal profits in the long run would motivate entrants

Assignment Help Microeconomics
Reference no: EM13825473

Questions-

1. In the long run, if firms make a normal profit, then new entrants would be encouraged to move into the industry.

A) True

B) False

2. If Big Time Utilities wins a patent for a nuclear mini-power plant that enables it to become the monopoly provider of small generators, the resulting industrial structure leads to:

A) a loss in consumer surplus.

B) a gain in consumer surplus.

C) no change in consumer surplus.

D) a loss of comparative advantage.

3. Companies in the ABC industry are enjoying short-run economic profits. The number of units sold has recently been increasing. This increase is due to:

A) only existing firms expanding production.

B) only new sellers entering the market.

C) both existing companies expanding and new sellers coming into the market.

D) government entering the market.

Additional Information-

These multiple choice questions related to Economics. The first problem is about firms making normal profits in the long run would motivate new entrants into entering the industry, the second problem is about winning a patent and becoming a monopoly and the third problem is about sales increasing the short run and the firms enjoying short run economic profits.

Reference no: EM13825473

Questions Cloud

How a legal memorandum looks like : Before the Statement of Facts, sometimes it is appropriate to include a brief introduction that explains why the writer has been asked to produce the memo or which provides some background information.
Find an app that uses device capabilities to provide product : Find an app that uses device capabilities to provide a product that previously couldn't exist. Explain what makes this app important or innovative.
Uses the double-declining-depreciation method : On 2010 July 1, Frick Company purchased equipment for $400,000, and installation and testing costs totaled $40,000. The equipment has an estimated useful life of 10 years and an estimated salvage value of $40,000. If Frick uses the double-declining-d..
Prepare the manufacturing statement for company : Use the following information to prepare the manufacturing statement for Forsythe Company for the month ended June 30.
Make normal profits in the long run would motivate entrants : These multiple choice questions related to Economics. The first question is about firms making normal profits in the long run would motivate new entrants into entering the industry
Net realizable value of receivable appearing balance sheet : On January 1, 2014, the Accounts Receivable and the Allowance for Uncollectible Accounts for Darius Company carried balances of $20,000 and $550 respectively. During the year, the company reported $70,000 of credit sales. There was $400 of receivable..
Under the accrual basis of accounting : Fox Auto sold merchandise to a customer for $3,000 on credit on March 10. The customer paid Fox Auto the                    amount due on March 31. Under the accrual basis of accounting, Fox Auto will recognize the revenue on March 31. The March 10th..
Caselet: katsand wines : Caselet: Katsand Wines
Prepare statement of retained earnings for the year ended : Powder Corporation began operations on January 2, 2013, with a total investment of $150,000 by its stockholders. Net income for its first year of business was $90,000. During 2014 and 2015, net income increased to $188,000 and to $217,000, respective..

Reviews

Write a Review

 

Microeconomics Questions & Answers

  L for the firm the major goal of profit sharing plans is to

for the firm the major goal of profit sharing plans is to ltbrgtfor the firm the major goal of profit sharing plans is

  One input to a production process

Suppose there is only one input to a production process. Is each of the conditions below possible? If so, describe a real-world scenario that would fit the conditions, and draw a production function that reflects this scenario. If not, explain ..

  Explain relationship between marginal and productivity

What is average productivity and What is marginal productivity? Explain the relationship between marginal and average productivity. What would happen to marginal and average productivity if a technological innovation is introduced to the productio..

  Explain the natural rate of unemployment recognize three

there are probably a thousand macro economic indicators some measure the overall national economy some are more

  Does the result of the answer change if game is played

assume the following game is played one time only. based on the information in the payoff matrix pnc bank and citizens

  Describe in this context statement that an individual bank

1 discuss the process of money creation by the commercial banks2 suppose the central bank sells 5 billion worth of

  Evaluating the accounts payable of a certain firm

An auditor wishes to determine a rule to use in evaluating the accounts payable of a certain firm. There are 5000 such accounts. The auditor considers the accounts as satisfactory if there are mistakes in only 1% of them.

  Characterize the demands for the goods

Characterize the demands for the goods as being more elastic or more inelastic - smoke cigars are bothered by the odor of cigar smoke

  How do we fight a recession using monetary policy

How do we fight a recession using Monetary Policy (Make sure to include the 4 tools of monetary policy and how we should use them.)

  What is the companys comparative advantage

Describe the company - what is the companys comparative advantage in the global marketplace?

  Holding real money supply constant while raising real gdp

In deriving LM curves, holding the real money supply constant while raising real GDP causes us to

  Discuss the difference between a change in demand

Discuss the difference between a change in demand and a change in quantity demanded in terms of causes and in how they appear graphically.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd