QUESTION 1: The average total cost curve on a graph will be found below the averagevariable cost curve.
True
False

QUESTION 2: A monopolistic competitor produces a differentiated product having numerous close substitutes.
True
False

QUESTION 3: At least in theory, the more competition there is in the market, the greateralso is the efficiency in the economy.
True
False

QUESTION 4: The demand which a monopolist is faced with is also the market demandfor the product.
True
False

QUESTION 5: Marginal costs will start to fall before average costs start to fall.
True
False

QUESTION 6: The short run is a period of time when all factor inputs are fixed.
True
False

QUESTION 7: A firm's economic profit is usually higher than its accounting profit.
True
False

QUESTION 8: The monopolist produces a product for which there are no close substitutegoods.
True
False

QUESTION 9: A firm may become a monopoly if it controls the entire supply of a basicinput required to manufacture a product, has exclusive rights to make a product or use a particular process, and/or is awarded a market franchiseby a government agency.
True
False

QUESTION 10: Total fixed cost curve shows that fixed costs vis-à-vis production levelsdon't change.
True
False

QUESTION 11: A monopolist is different from a perfect competitor by the monopolist'sprice being equal to average revenue.
True
False

QUESTION 12: In general, the product price is higher in an oligopolistic market than thatof monopolistic competition.
True
False

QUESTION 13: Unlike the perfect competitor, who is a price taker, the monopolist is facedwith a demand curve such that he/she can charge whatever price he/shewishes.
True
False

QUESTION 14: One of the objectives of the monopolist is to squeeze out smaller competitors from the market.
True
False

QUESTION 15: To affect sales, a monopolistic competitor can lower price or differentiatethe product.
True
False

QUESTION 16: Economic profit involves explicit costs, while accounting profits involveimplicit costs.
True
False

QUESTION 17: Since there is free mobility of resources, the perfect competitor can freelymove in and our of a given perfectly competitive market.
True
False

QUESTION 18: Economic profit involves total revenue minus the total costs, with total costmeasured as the opportunity costs of production.
True
False

QUESTION 19: A firm in a perfectly competitive industry may incur a short-term loss and yet continue producing in order to minimize losses.
True
False

QUESTION 20: Average fixed costs diminish continuously as output increases.
True
False
4 points

QUESTION 21: A perfect competitor can reap an economic profit in the short run but notin the long run.
True
False

QUESTION 22: The four types of market structures we study in economics are perfectcompetition, monopolies, oligopolies, and corporations.
True
False

QUESTION 23: A perfectly competitive industry is characterized by a few producers, all producers produce a homogeneous product, and there is free mobilityof resources.
True
False

QUESTION 24: The long-run average cost curve will be derived by adding up all the shortrun average total cost curves.
True
False

QUESTION 25: Economies of scale is when the cost of producing a unit increases as itsoutput rate increases.
True
False