According to Joseph Schumpeter, firms face more competition from innovations that have not been discovered yet than from other firms

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According to Joseph Schumpeter, firms face more competition from innovations that have not been discovered yet than from other firms.

False

True

The long-run level of profit is the same in each perfectly competitive industry.

True

False

A free market can allocate production across two farms to minimize total costs even when an ideal central planner could not.

True

False

If P > AC in a given industry, then:

a. the industry has the optimal amount of resources.

b. it is not possible to know whether the industry has the optimal amount of resources.

c. there are too many resources in that industry.

d. there are too few resources in that industry.

If a single supplier produces a good with many good substitutes, then

A.it will have little control over the market price.

B.the market demand will be perfectly elastic.

C.the price it chooses to set must be less than the market price in order to sell additional output.

D.the demand curve for its output will be downward sloping.