By "normal profits" is meant
A. | The surplus profit made by the least efficient firms |
B. | The payment made to the marginal entrepreneur for his abilities |
C. | The profit made by the marginal entrepreneur in a normal year |
D. | The payment needed to keep an entrepreneur in an industry |
Option: D Explanation : Click on Discuss to view users comments. |
If a single monopolist enjoying internal economies of scale is replaced by a large number of producers operating under perfect competition, it may be said that
A. | Both price and output will rise |
B. | Price will increase and output will fall |
C. | Price will increase but the effect on output will be indeterminate |
D. | Output will fall but the effect on price will be indeterminate |
Option: C Explanation : Click on Discuss to view users comments. |
In all forms of imperfect competition the average revenue curve facing the individual slopes
A. | Horizontally |
B. | Downward |
C. | Upward |
D. | Vertically |
Option: B Explanation : Click on Discuss to view users comments. |