10. Quantity Refer to the graph shown. The supply curve for the perfectly compet

Question

10. Quantity Refer to the graph shown. The supply curve for the perfectly competitive firm is best represented by the segment: a. AB b. BD. c. CE. d. DE 11. Firms base decisions on the decisions of other firms in the market in: a. a monopolistic industry b. an oligopolistic industry c. a monopolistically competitive industry. d. a perfectly competitive industry. 12. Allocative inefficiency due to monopoly is characterized by the condition: a. P> ATC b. P> MR c. P> MC 3. All of the following are long-run changes, except: An industry expands as more firms enter it A firm moves into larger production facilities to expand production Some firms decide to leave an industry and the industry contracts A firm produces more output by acquiring more raw materials for its existing factory

Explanation / Answer

11) Option b is correct (firms in an oligopolistic industry base their decisions on the decisions of other firms)

12) Option d is correct (P > MC indicates an allocative inefficiency)

13) Option d is correct (A firm producing more output by acquiring more raw materials is a short run change)

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