1. Productive efficiency does not hold for a profit-maximizing, monopolistically competitive firm in the long run equilibrium because the firm operates along the diseconomies of scale region of its average total curve? True or False
2. Suppose a monopoly is producing its profit-maximizing output level. Now suppose the government imposes a lump sum tax on the monopoly, independent of its output. As a result the monopoly's profit will fall? True or False
3. In perfectly competitive market, in the long run, arbitrage profits will be bid away. true or false?
4. If a monopolistically competitive firm breaks even, the firm is earning as much in this industry as it could in any other comparable industry? true or false?
5. If economies of scale are significant, the typical firm will not reach the minimum point on its long run average cost curve until it has produced a large fraction of industry sales? True or false?
6. The signaling hypothesis of education states that education is a costly activity that enhances a worker's productivity. True or false?
7. The supply curve of a uniquely talented actor or superstar athlete will be perfectly inelastic?