The market for lawn services is perfectly competitive. Larry's Lawn Service cannot increase its total revenue by raising its price because _________________.

Larry's supply of lawn services is perfectly inelastic
the demand for Larry's services is perfectly inelastic
Larry's supply of lawn services is inelastic
the demand for Larry's services is perfectly elastic

The first table shows the market demand schedule for CDs, and the second table shows the cost structure of each firm. The CD market is perfectly competitive, there are 100 identical firms, and each firm's total fixed costs are £200 a week. The market price of a CD is ________, and _______ CDs are produced and sold.

£8.50; 24,000
£9.00; 20,000
£10.00; 10,000
£9.50; 15,000

The first table shows the market demand schedule for CDs, and the second table shows the cost structure of each firm. The CD market is perfectly competitive, there are 100 identical firms, and each firm's total fixed costs of £2,000 a week. In the short run, each firm produces __________ CDs and makes an economic profit of _________ a week.

200; £0
150; -£255
250; £375
100; £300

The first table shows the market demand schedule for CDs, and the second table shows the cost structure of each firm. The CD market is perfectly competitive, there are 100 identical firms, and each firm has a total fixed cost of £200. In the long run, the number of firms in the industry is _____, and the market price of a CD is _____.

50; £10.00
150; £8.50
200; £10.00
100; £9.50

The figure shows the costs for the typical grower in the perfectly competitive turnip industry. Currently, the price of a turnip is £1.00. In the long run, the industry supply of turnips will __________________________.

increase, and the turnip grower's economic profit will decrease
increase, and so will the industry demand for turnips
increase, and the turnip grower's economic profit will increase
decrease, and the price of a turnip will fall to £0.75

The figure shows the costs for the typical grower in the perfectly competitive turnip industry. Currently, the price of a turnip is £1.00. The demand for turnips decreases permanently. The turnip industry experiences neither external economies nor external diseconomies. In the long run, the price of a turnip ________________________.

decreases, and turnip grower's will make normal profit
increases, and so will the industry demand for turnips
increases, and the turnip grower's economic profit will increase
decreases to below £0.75, and turnip grower's will make normal profit

The apple industry is perfectly competitive and is in long-run equilibrium. Now a disease kills 50 percent of the apple orchards. In the short run, the price of a bag of apples __________ and the remaining apple growers make ____________ profits. In the long run, the ______________________.

increases; positive economic; orchards will be replanted and economic profit will return to zero
remains the same; normal; orchards will be replanted and growers will make normal profits
increases; normal; price of apples will return to their original level
increases; normal; orchards will be replanted and economic profit will return to zero

If the long-run industry supply curve in a perfectly competitive industry is upward sloping, then the industry experiences ______________ and as the industry expands the price ________________.

external diseconomies; rises
external diseconomies; falls
external economies; rises
external economies; falls

Initially, a competitive industry that has 1,000 firms is in long-run equilibrium. Then 100 firms in the industry adopt a new technology that reduces the average cost of producing the good. In the short run, the price __________, firms with the new technology make __________ profits, and firms with the old technology _______________.

falls; positive economic; incur economic losses
remains the same; normal; incur economic losses
remains the same; positive economic; make normal profit
remains the same; positive economic; incur economic losses

A competitive industry is in long-run equilibrium. Some firms in the industry adopt new technology that reduces the average total cost of producing the good. In the long run, the price is __________, firms with the new technology make __________ profits, and firms with the old technology _______________.

lower; normal; switch to the new technology or exit the industry
lower; normal; exit the industry
constant; economic; make normal profit
constant; normal; exit the industry

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