Long Answers:
True/False Questions= Explain carefully why it is either True or False.
Full credit requires both the indication of True or False and the careful and comprehensive explanation.
5)If the marginal cost is always increasing, then the average total cost curve is always increasing.
6)Since they are price takers, perfectly competitive firms can disregard their variable costs in the
short run.
7)The deadweight loss from a monopoly occurs because surplus is redistributed from consumers
to producers.
8)Marginal cost for a firm must always increase with production in the short run.
9)In the long run, firms in perfectly competitive markets that do not exit the market will be able
to sustain a positive economic profit.
10)In the long run, firms in monopolistically competitive markets that do not exit the market will be able to sustain a positive economic profit.