c)Their individual manufacturing is insignificant relative to the manufacturing of the market.

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d)The federal government exercises control over the sector power of vain firms.

2.Compared come the early on 1950s, this particular day farm calculation per labor-hour is

 a)10 times greater than it was then.
b)The same as it was then.
c)20 times greater than it was then.
d)20 percent much less than it was then.

3.Because farm products have a low price elasticity the demand, a tiny change in farm yard output will have

a)An indeterminate effect on price.
b)No impact on price.
c)A smaller effect on price.
d)A larger impact on price.

4.The price elasticity of demand for food is

a)Perfectly inelastic.
b)Relatively inelastic.
c)Relatively elastic.
d)Perfectly elastic.

5.In bespeak to proceed earning an financial profit, individual farmer must

a)Expand their price of output until marginal cost equals zero.
b)Charge higher prices than their competitors.
c)Continue to boost their productivity.
d)Charge reduced prices than their competitors.

6.If a price support is maintained over the equilibrium price, the result will it is in a

a)Market price that is as well low.
b)Market price same to the equilibrium price.
c)Surplus the the product.
d)Shortage the the product.

7.The primary emphasis of U.S. Farm policy has been

a)Subsidies.
b)Price supports.
c)Low-interest loans.
d)Tax credits for mechanically equipment.

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1) as soon as positive financial profits exist in one industry:

the industry price that the an excellent produced by the market is much less than the marginal cost faced by the industry.
the sector price that the good produced by the sector is less than the average total cost that the industry.
there is an leave of firms indigenous the industry.
resources circulation from less fertile uses to that certain industry.

2) when price is much less than the firms" minimum average full cost, ________.

firms" profits are most likely to it is in maximum
prices are most likely to loss further
new that company will enter the market
existing firms will certainly leave the market

3) The entry of brand-new firms into a perfect competitive market will cause:

an boost in the profit of present firms.
a diminish in the profit of existing firms.
a right change of the demand curve that the good being developed by the firms.
a left transition of the need curve that the an excellent being developed by the firms.

4) entry of brand-new firms into an existing market causes:

a downward movement along the industry supply curve.
a leftward shift of the sector supply curve.
an upward activity along the industry supply curve.
a rightward transition of the industry supply curve.

5) The motivation for new firms to get in into a perfect competitive sector is generally the:

high level of government intervention in the market.
large number of buyers in the market.
large number of existing this firm in the market.

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positive earnings observed because that the existing this firm in the market.