Podcast
Questions and Answers
In the long run, a firm experiences constant returns to scale when:
In the long run, a firm experiences constant returns to scale when:
- the firm's output decreases despite an increase in all inputs
- the firm's output increases proportionally more than the increase in all inputs
- the firm's output increases proportionally less than the increase in all inputs
- the firm's output increases at the same rate as the increase in all inputs (correct)
In perfect competition, a firm is a price taker, meaning that:
In perfect competition, a firm is a price taker, meaning that:
- the firm can collaborate with other firms to set a higher market price
- the firm has no control over the market price and must accept the prevailing market price (correct)
- the firm can set its own price based on its production costs
- the firm can influence the market price through its output level
Which of the following is a characteristic of monopolistic competition?
Which of the following is a characteristic of monopolistic competition?
- Firms producing homogeneous products
- A single firm dominating the market
- Numerous firms selling identical products
- Product differentiation among firms (correct)
The kinked demand curve model is often used to explain the behavior of firms in which market structure?
The kinked demand curve model is often used to explain the behavior of firms in which market structure?
What is the primary purpose of a patent in the context of intellectual property?
What is the primary purpose of a patent in the context of intellectual property?
In the context of production technologies, what does the Law of Diminishing Returns state?
In the context of production technologies, what does the Law of Diminishing Returns state?
What is the primary difference between short-run and long-run average cost curves?
What is the primary difference between short-run and long-run average cost curves?
What is the main characteristic of a firm in a perfectly competitive market?
What is the main characteristic of a firm in a perfectly competitive market?
What factor payment is associated with the supply of labor in the production process?
What factor payment is associated with the supply of labor in the production process?
What is the key characteristic of a natural monopoly?
What is the key characteristic of a natural monopoly?
