Author Question: Competition exists among sellers only if they A) all set price equal to marginal cost. B) are ... (Read 54 times)

gonzo233 · **on:** Jun 29, 2018

Competition exists among sellers only if they

A) all set price equal to marginal cost.
B) are price takers.
C) are so numerous that no one of them can affect the price by restricting output.
D) receive no special privileges from government.
E) struggle to satisfy potential buyers.

Question 2

In the long run, under perfect competition:

A) firms earn positive economic profit because of economies of scale.
B) firms earn positive accounting profit because of government regulations.
C) firms earn zero economic profit because of free entry and exit of firms.
D) firms earn negative economic profit because of free entry and exit of firms.