Chapter 8: Perfect Competition
Q. 19
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How does the average cost curve help to show whether a firm is making profits or losses?
Q.2
Page 210
Would independent trucking fit the characteristics of a perfectly competitive industry?
Q.20
Page 212
What two lines on a cost curve diagram intersect at the zero-profit point?
Q.21
Page 212
Should a firm shut down immediately if it is making losses?
Q.22
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How does the average variable cost curve help a firm know whether it should shut down immediately?
Q. 23
Page 212
What two lines on a cost curve diagram intersect at the shutdown point ?
Q. 24
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Why does entry occur?
Q.25
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Why does exit occur?
Q.26
Page 212
Do entry and exit occur in the short run, the long run, both, or neither?
Q.27
Page 212
What price will a perfectly competitive firm end up charging in the long run? Why?
