74 In the long-run, the entry of new firms in

a competitive market shifts the aggregate

supply curve to the left. True b. False When
a perfectly...

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74
In the long-run, the entry of new firms in a competitive market shifts the aggregate supply curve to
the
left. a. True
b. False When a perfectly competitive firm's demand curve lies above its average total cost curve,
the firm incurs
an economic loss at that level of output. a. True
b. False If in the short run, at the profit maximizing level of output, the average revenue curve of a
competitive
firm lies above the average cost curve then: a.the firm is barely able to cover its variable costs.
b.the firm is just able to cover its total cost.
c.the firm is incurring losses.
d.the firm enjoys above-normal profits.
e.the firm must shut down. The figure given below shows the revenue and the cost curves of a
perfectly competitive firm.
Figure 10.3 Refer to Figure 10.3 and calculate the total fixed cost borne by the firm at the profit
maximizing level of
the output. a.$56
b.$84
c.$28
d.$42
e. $70 If at the profit maximizing level of output, the AR curve lies below the ATC curve in the short
run, the
firm is earning positive economic profit. a. True