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[James Stewart]

18) As a result of increased logging in a rural town, new roads are installed to the town and more people choose to live in the town. The result of this is the logging industry faces ________ input prices and is likely to be a(n) -cost industry.
A) lower;decreasing
b)higher;decreasing
c)lower;increasing
d)higher;increasing

20) Which of the following is not a characteristic of a purely competitive market?
a)numerous sellers
b)free entry and exit
C) a homogeneous product
d) few buyers

42) In which market structure does an individual firm have the least influence over price?
a) pure competition
b) monopolistic competition
c) monopoly
d) oligopoly

45) If the firms in an industry in pure competition are earning positibe profits, in the long run the price will ___________ until profits_____.
a) fall;negative
b)increase;zero
c)fall;zero
d)increase;positive