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Questions-
1. The competitive market structure assumes all of the following except:
A) ease of entry and exit.
B) identical products.
C) a small number of buyers and sellers.
D) zero economic profit in the long run.
2. When a firm experiences economies of scale:
A) its long-run average total costs increase as output increases.
B) its long-run average total costs remain the same as output increases.
C) it can take advantage of specialization of labor and management.
D) it runs into bureaucratic red tape.
Additional Information-
These multiple choice questions are belong to Economics. The first question is about the exception for competitive market structure and the second question is about the economies of scale a firm experiences.
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