• 2022-06-06
    中国大学MOOC: Firms operating in perfectly competitive markets try to maximize profits.
  • 内容

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      In monopolistically competitive markets, free entry and exit suggests that A: the market structure will eventually be characterized by perfect competition in the long run. B: all firms earn zero economic profits in the long run. C: some firms will be able to earn economic profits in the long run. D: some firms will be forced to incur economic losses in the long run.

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      The weak axiom of profit maximizing behavior states that in a modern mixed economy, firms have only a weak incentive to maximize profits.

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      中国大学MOOC: A firm operating in a perfectly competitive industry will continue to operate in the short run but earn losses if the market price is less than that firm’s average variable cost but greater than the firm’s average fixed cost.

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      中国大学MOOC: The competition in monopolistically competitive markets is most likely a result of having many sellers in the market.

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      Firms maximize profit when