Which of the following indicates that a perfectly competitive firm is in long-run equilibrium?

The two firms in an industry are deciding whether to advertise. The profit to each firm depends on the other firm’s decision. The first entries in the matrix below indicate the profit earned, in millions of dollars, by Firm A; and the second entries indicate the profits earned, in millions of dollars, by Firm B. Table: Firm A and Firm B Payoff Matrix Nature View Firm A Advertise Do Not Advertise Advertise $7, $1 $5, $4 Do Not Advertise $3, $2 $2, $0 Based on the payoff matrix, which of the following is correct?

The question refers to the following graph, which shows the cost and revenue curves for a profit-maximizing monopolistically competitive firm. The figure shows a graph with a horizontal axis labeled Quantity, a vertical axis labeled Price, and an origin labeled 0. Four quantities appear on the horizontal axis, starting to the far right of the origin, from left to right, and are labeled Q 1, Q 2, Q 3, and Q 4. Five prices appear on the vertical axis and are labeled, from bottom to top and starting above the origin, P 1, P 2, P 3, P 4, and P 5.Four lines appear on the graph. A curved line labeled Marginal Cost begins slightly below P 1 and to the left of Q 1, near the vertical axis. The curved line moves downwards and to the right until it is slightly above the horizontal axis and then moves steeply upwards and to the right crossing through points Q 1 and P 1, and Q 2 and P 4. It ends high above P 5 and between Q 3 and Q 4. A curved line labeled Average Total Cost begins above P 5 and to the left of Q 1. It moves steeply downwards and to the right until it intersects the Marginal Cost curve at a quantity between Q 1 and Q 2 and at a price of P 2. It then turns up and moves steadily upwards and ends high above P 5, to the right of Q 4. A straight line labeled Marginal Revenue starts high above P 5 on the vertical axis. The line moves steeply downwards and to the right and intersects the Marginal Cost curve at point Q 1 and P 1. It continues moving downwards till it crosses through the horizontal axis between Q 3 and Q 4 and ends below the axis to the right of Q 4. A straight line labeled Demand begins at the same point as the Marginal Revenue high above P 5 on the vertical axis. The line moves steadily downwards and to the right crossing through points Q 1 and P 5. It then intersects the Marginal Cost curve at point Q 2 and P 4. It intersects the Average Total Cost curve at point Q 3 and P 3. It continues moving downwards till it crosses Q 4 and P 2. It continues downwards and to the right and ends at approximately P 1 and to the right of Q 4. What is the profit-maximizing price and quantity?

Which of the following is most likely to occur if a single-price monopolist is replaced by a perfectly competitive market?

The condition for allocative efficiency is violated when

At a firm’s current rate of output, the marginal cost is $65, the average variable cost is $35, the average fixed cost is $30, and the product price is $65. Which of the following statements is true for the firm?

Assume that barber shops operate in perfectly competitive product and factor markets. Which of the following will happen to working barbers if the price of haircuts decreases?

In most cases the supply curve for a perfectly competitive industry can be described as which of the following?

The allocatively efficient level of output is produced in any market structure when

Most economists argue that a monopoly is inefficient because it