Econ Exam 3 | Questions with 100% Correct
Answers | Verified | Latest Update 2026/2027
Save
Terms in this set (30)
If the price of ricotta cheese, an b.the market supply curve for lasagna will shift to
ingredient in lasagna, increases, then the left.
a.the market supply curve for
lasagna will shift to the right.
b.the market supply curve for
lasagna will shift to the left.
c.there will be a movement down
along the market supply curve for
lasagna.
d.there will be a movement up along
the market supply curve for lasagna.
A firm should shut down production a.P <minimum AVC.
when
a.P <minimum AVC.
b.P = minimum ATC.
c.P>minimum AVC.
d.P = MC.
, If a new sushi restaurant opens, then d.the market supply curve for sushi will shift to the
a.the market supply curve for sushi right.
will shift to the left.
b.there will be a movement down
along the market supply curve for
sushi.
c.there will be a movement up along
the market supply curve for sushi.
d.the market supply curve for sushi
will shift to the right.
In a competitive market where firms d.a lower price and more firms
are earning economic profits, which
of the following should be expected
as the industry moves to long-run
equilibrium, ceteris paribus?
a.a higher price and fewer firms
b.higher price and more firms
c.a lower price and fewer firms
d.a lower price and more firms
Which of the following is d.zero economic profit in the long run
characteristic of a perfectly
competitive market?
a.a small number of firms
b.exit of small firms when profits are
high for large firms
c.marginal revenue lower than price
for each firm
d.zero economic profit in the long
run
Answers | Verified | Latest Update 2026/2027
Save
Terms in this set (30)
If the price of ricotta cheese, an b.the market supply curve for lasagna will shift to
ingredient in lasagna, increases, then the left.
a.the market supply curve for
lasagna will shift to the right.
b.the market supply curve for
lasagna will shift to the left.
c.there will be a movement down
along the market supply curve for
lasagna.
d.there will be a movement up along
the market supply curve for lasagna.
A firm should shut down production a.P <minimum AVC.
when
a.P <minimum AVC.
b.P = minimum ATC.
c.P>minimum AVC.
d.P = MC.
, If a new sushi restaurant opens, then d.the market supply curve for sushi will shift to the
a.the market supply curve for sushi right.
will shift to the left.
b.there will be a movement down
along the market supply curve for
sushi.
c.there will be a movement up along
the market supply curve for sushi.
d.the market supply curve for sushi
will shift to the right.
In a competitive market where firms d.a lower price and more firms
are earning economic profits, which
of the following should be expected
as the industry moves to long-run
equilibrium, ceteris paribus?
a.a higher price and fewer firms
b.higher price and more firms
c.a lower price and fewer firms
d.a lower price and more firms
Which of the following is d.zero economic profit in the long run
characteristic of a perfectly
competitive market?
a.a small number of firms
b.exit of small firms when profits are
high for large firms
c.marginal revenue lower than price
for each firm
d.zero economic profit in the long
run
