Q4. In a CFA study seminar, the following comments were made: Comment 1: “In the short run, an increase in demand in a perfectly competitive industry will result in negative economic profit for some firms in the industry.” Comment 2: “In the long run, a permanent increase in demand in a perfectly competitive industry will result in zero economic profit for the firms in the industry.” With respect to these comments: A) both are correct. B) both are incorrect. C) only one is correct.
Q5. If the market demand for a product decreases in a competitive market, then the quantity supplied by an individual firm will: A) decrease and firms will exit the market in the long run. B) decrease and firms will enter the market in the long run. C) increase and firms will enter the market in the long run.
Q6. A technology that all of the firms in a perfectly competitive industry are using in their production process has been banned by new legislation. What will most likely be the effect if these firms stop using this technology? A) Firms will adopt a different technology that reduces their costs of production. B) The quantity that the industry will supply at a given price will be reduced. C) Profit will no longer be maximized at the level of output where marginal cost is equal to the market price.
[此贴子已经被作者于2009-1-6 13:53:11编辑过] | 
发表于 2009-1-6 13:41
| 
