In the long run, a profit-maximizing firm will choose to exit a market when a. marginal cost exceeds marginal revenue at the current level of production. b. average fixed cost is falling. c. total revenue is less than total cost. d. variable costs exceed sunk costs.

Which of the following is a competitive benefit experienced by the first mover firm in an industry? a. the first mover will be able to achieve a less steep learning curve. b. the first mover will be able to reduce the switching costs. c. the first mover will not have to patent its products or technology. d. the first mover will be able to reduce costs through economies of scale.