16. In pure competition, price is determined where the market A. Demand and supply curves intersect B. Total cost is less than total revenue. C. Average total cost equals total variable cost. D....

A. Demand and supply curves intersect

B. Total cost is less than total revenue.

C. Average total cost equals total variable cost.

D. Demand intersects the individual firm's marginal cost curve.

20. Long-run competitive equilibrium


A. Is realized only in constant-cost industries.

B. Is not economically efficient

C. Will never change once it is realized


D. Results in zero economic profit.

21. Marginal product is


A. The change in total revenue attributable to the employment of one more worker.


B. The change in total output attributable to the employment of one more worker.


C. Total product divided by the number of workers employed.


D. The change in total cost attributable to the employment of one more worker


24. Oligopoly is more difficult to analyze than other market models because


A. of mutual interdependence and the fact that oligopoly outcomes are less certain than in other market models


B. The marginal cost and marginal revenue curves of an olig opolist play no part in the determination of equilibrium price and quantity.


C. unlike the firms of other market models, it cannot be assumed that oligopolists are profit maximize.


D. the number of firms is so large that market behaviour cannot be accurately predicted.
30. The demand curve confronted by the individual, purely competitive firm is


A. Perfectly inelastic


B. Relatively elastic, that is, the elasticity coefficient is greater than unity


C. Relatively inelastic, that is, the elasticity coefficient is less than unity.


D. Perfectly elastic.


35. The short run is characterized by


A. Zero fixed costs.


B. Plenty of time for firms to either enter or leave the industry.


C. Fixed plant capacity.


D. Increasing but not diminishing returns.