question archive According to Joseph Schumpeter, firms face more competition from innovations that have not been discovered yet than from other firms
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.
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According to Joseph Schumpeter, firms face more competition from innovations that have not been discovered yet than from other firms.
The given statement is False
The reason is that the firms which have high innovated techniques of production, they are able to experience less competition.
The long-run level of profit is the same in each perfectly competitive industry.
The given statement is False.
The reason is that it is not possible to compare the long run profits of different industries.
A free market can allocate production across two farms to minimize total costs even when an ideal central planner could not.
The given statement is True.
The free markets offer the most efficient allocations.
If P > AC in a given industry, then:
Option b. it is not possible to know whether the industry has the optimal amount of resources is correct.
The reason is that if the prices are greater than the average cost the profits of the company are positive and the level of resources cannot be ascertained.
If a single supplier produces a good with many good substitutes, then
Option B.the market demand will be perfectly elastic is correct.
The reason is that the availability of perfect substitutes makes the demand of a product elastic.
