Questions-

1. The competitive market structure assumes all of the following except:

A) ease of entry and exit.

B) identical products.

C) a small number of buyers and sellers.

D) zero economic profit in the long run.

2. When a firm experiences economies of scale:

A) its long-run average total costs increase as output increases.

B) its long-run average total costs remain the same as output increases.

C) it can take advantage of specialization of labor and management.

D) it runs into bureaucratic red tape.

Additional Information-

These multiple choice questions are belong to Economics. The first question is about the exception for competitive market structure and the second question is about the economies of scale a firm experiences.