True/False Questions 1. Average total cost is the sum of fixed cost plus variabl

ID: 1178486 • Letter: T

Question

True/False Questions

1. Average total cost is the sum of fixed cost plus variable cost.

2. Other things equal, the large is the contribution margin(P-V), the smaller is the breakeven quantity.

3. When the products are standardlized, we can be sure that the industry will behave competitively.

4. When free entry exists, the perfect competitive model suggests that economic profit will always be equal to zero.

5. The firm's demand curve in monopolistic competition is perfectly elastic.

6. A profit-maximizing monoplist produces output where managerial cost is equal to the price.

7. Managerial revenue is always twice as steep as the demand curve.

8. Collusion is harder to achieve if the costs of the firms in the group are similar.

1. TRUE

2. TRUE

3. FALSE

4. TRUE

5. FALSE

6. FALSE

7. TRUE

8.FALSE

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