Assume that there are two types of perfectly competitive firms ...

[plus1]

Assume that there are two types of perfectly competitive firms whose cost of production differ. An increase in input prices will lead to an exodus of high cost firms before low cost ones.
  Indicate whether the statement is true or false

Question 2

Which of the following statements is true in the context of the long run?
 a. All the factors of production are fixed.
  b. No new firms enter the market.
  c. The producer can vary all the factors of production.
  d. The firms earn positive economic profit.
  e. Large firms tend to acquire market power.

[joneynes]

Answer to Question 1

T

Answer to Question 2

c

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Correct answers!

[joneynes]

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