Use the following graph for a perfectly competitive firm to answer the next question.  The firm isMultiple Choiceearning a normal (zero economic) profit.earning an economic profit.generating a loss, but should continue to produce in the short run.generating a loss and should shut down in the short run.

In the long run, a representative firm in a monopolistically competitive industry will end upMultiple Choicehaving an elasticity of demand that will be less than it was in the short run.having a larger number of competitors than it will in the short run.producing a level of output at which marginal cost and price are equal.earning a normal profit, so zero economic profit.

Economic profits in a short-run equilibriumQuestion 1Select one:a.are never negative because a firm would shutdown if profits are negative.b.may be positive, zero, or negative.c.will never exceed the difference between marginal revenue and marginal cost per unit of output.d.are always zero.

Which of the following statements is NOT correct about perfectly competitive firms: Group of answer choices They will shut down in the short run if they are making economic losses. They cannot sustain positive economic profits in the long run. They will exit the market, in the long run, if they are making economic losses. They will remain in operation in the short run if they are making positive economic profits. They have no control over the market price.

Consider a firm that has no fixed costs and that is currently losing money. a. Are there any situations in which it would want to stay open for business in the short run? multiple choice 1No, the firm will want to shut down.Yes, the firm might want to operate in the long run.Yes, the firm will want to stay in business if revenue is greater than variable costs.There is insufficient information to make this determination. b. A firm with no fixed costs multiple choice 2has a normal profit.has an accounting profit.should shut down.is really in the long run.

Under perfect competition, if an industry is characterized by positive economic profits in the short runQuestion 2Select one:a.firms will enter the market in the long run and the short-run supply curve will shift outward.b.firms will leave the market in the long run and the short-run supply curve will shift inward.c.firms will leave the market in the long run and the short-run supply curve will shift outward.d.firms will enter the market in the long run and the short-run supply curve will shift inward.Clear my choice