1. Since there is free mobility of resources, the perfect competitor can freely move in and our of a given perfectly competitive market.
True
False
2. Economic profit involves explicit costs, while accounting profits involve implicit costs.
True
False
3. A firm in a perfectly competitive industry may incur a short-term loss and yet continue producing in order to minimize losses.
True
False
4. The demand which a monopolist is faced with is also the market demand for the product.
True
False
5. The average total cost curve on a graph will be found below the average variable cost curve.
True
False
6. A monopolistic competitor produces a differentiated product having numerous close substitutes.
True
False