Traders enjoy _______ project at equilibrium price.
Normal
Abnormal
Lesser
More
To maximize profit, a perfectly competitive firm should produce up to the output level where:
MR = MC
P = MR
P = MC
1and 3 are correct
Normal price is fixed in the ________ period.
Market
Short
Long
Very long
Secular price is fixed in the ________ period.
Very short
If demand and supply change at the same rates, the equilibrium price will
Increase
Decrease
Remain Constant
Neither increase nor decrease
The demand curve facing an individual seller under pure and perfect competition is :
A vertical straight line
A horizontal straight line
A downward sloping straight line
A downward vertical line
Perfect competition is characterised by
Large number of firms ; hetrogeneous product ; easy entry and exit
Large number of firm ; homogeneous product ; incomplete information
Large number of firm ; homogenous product ; easy entry and exit
Few firms ; homogeneous product ; difficult entry and exit
In the long run, a profit , maximizing , perfectly competitive firm will earn:
A normal rate of return
Positive economic profit
Negative economic profit
Accounting profit that is greater than economic profit
The concept of equilibrium price is:
Practical
Theoretical
Both theoretical and practical
Neither theoretical nor practical
Slope of supply curve is :
Negative
Positive
Both positive and negative
Parallel
