When a purely competitive firm is in long-run equilibrium, price is equal to:
A. Marginal cost, but may be greater or less than average cost
B. Minimum average cost, and also to marginal cost
C. Minimum average cost, but may be greater or less than marginal cost
D. Marginal revenue, but may be greater or less than both average and marginal cost
B. Minimum average cost, and also to marginal cost
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Which statement CORRRECTLY describes "structural unemployment"?
A) Structural unemployment occurs mainly during recessions. B) Structural unemployment is also called "frictional unemployment." C) Structural unemployment occurs even when the economy is at the natural unemployment rate. D) The amount of structural unemployment depends on normal labor turnover.
The cross-price elasticity of demand for peanut butter with respect to the price of jelly is -0.3. If we expect the price of jelly to decline by 15%, what is the expected change in the quantity demanded for peanut butter?
A) +15% B) +45% C) +4.5% D) -4.5%
A change in which of the following variables will have no direct effect on domestic demand?
A) domestic income B) foreign income C) government spending D) the interest rate (r) E) none of the above
What are the non routine decisions of entrepreneurs that involve substantial financial risk?
What will be an ideal response?