________________ occurs when no resources in the economy are wasted.

Public efficiency
Allocative efficiency
Monopolistic efficiency
An external benefit

In perfect competition, a firm maximizes its economic profit if it produces the output at which ___________________.

total revenue equals total cost
price equals marginal cost
price equals average cost
economic profit equals zero in the short run

Charlie's Chimps is a firm that produces cuddly chimps for children. The market price of a chimp is £10, and Charlie's produces 100 chimps at a marginal cost of £11 a chimp. Charlie's _________________.

is maximizng its profit
will maximizng its profit if it produces fewer than 100 chimps
will maximizng its profit if it produces more than 100 chimps
will maximize its profit if it raises the price to £11 a chimp

The short-run industry supply curve ________________________.

is horizontal at the price at which firms will shut down
shows the total revenue at each possible market price
shows the marginal revenue at each possible market price
is vertical at the quantity at which firms will shut down

If firms in a competitive industry are ______________ then there is __________ for firms to _________ the industry.

making positive economic profits; an incentive; enter
making zero economic profits; an incentive; exit
incurring economic losses; no incentive; exit
making normal profits; an incentive; enter

Today, firms in a perfectly competitive industry are making an economic profit. In the long run, firms will ________ the industry until all firms in the industry are _______.

enter; making zero economic profit
exit; producing at the minimum point on their long-run average cost curve
exit; covering only their total fixed costs
enter; making zero normal profit

____________ cost is the full cost to society of producing one additional unit of output.

Marginal social
Fixed social
Social
Marginal

All the following items are types of market failure except _______________.

perfect competition
public goods
monopoly power
external benefit

Total social welfare equals __________________.

consumer surplus plus producer surplus
consumer surplus
deadweight loss
producer surplus

National defence is an example of _________________.

a public good
an efficient good
an external good
an external cost