If demand increases at faster rate than the supply equilibrium price will
Increase
Decrease
Neither increase nor decrease
Constant
Firms in perfectly competitive industries may be characterised as
Price Creators
Price Makers
Price Takers
Price Setters
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
In the short run , perfectly competitive firms may earn :
Positive economic Profit
Normal Profit
Negative economic Profit
All of the above
Secular price is fixed in the ________ period.
Very short
Short
Long
Very long
______ a dominant role in determining market price.
Supply Plays
Demand Plays
Demand and Supply play
Long run Equilibrium
At equilibrium price
Demand is more
Supply is more
Demand and supply are equal
Demand is lesser
The concept of equilibrium price is:
Practical
Theoretical
Both theoretical and practical
Neither theoretical nor practical
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
_________ a dominant role in determining equilibrium price in the long period.
Short run Equilibrium
