Problems-1 for a competitive industry in the long run if mr, Ask an Expert

Economics

Problems-

1. For a competitive industry in the long run, if MR = MC = SRATCmin = LRATCmin, then all of the following are true except:

A) the industry has achieved allocative efficiency.

B) consumer surplus is maximized.

C) firms are earning an economic profit.

D) the industry has achieved productive efficiency.

2. Sally sells soybeans in a competitive market. If her MC = $3, her MR = $4, her ATC = $5, and her AVC = $2, then she should:

A) decrease production.

B) shut down.

C) increase her price.

D) increase production.

Additional Information-

These multiple choice problems belong to Economics and the both problems are about marginal revenue being equal to marginal cost.

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Microeconomics, Economics

Category:- Microeconomics
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