The figure above shows the marginal revenue and long-run cost curves for a perfectly competitive firm. All other firms in the industry have identical curves. Which of the following statements is TRUE?
A) The firm's average cost exceeds the price.
B) Over time, firms will enter this industry.
C) The firm is earning economic profit.
D) None of the above is true.
D
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If seller increases the price of the good and the total revenue increases, this implies that the demand for the product is elastic.
Answer the following statement true (T) or false (F)
Determine if the following statements pertain to optimization by levels or optimization by differences
a. John is attempting to decide on a movie. He determines that the newest Batman movie provides him with $10 more of a benefit than the newest Spiderman movie. He adds to his net benefit by always buying a large popcorn and a large drink. b. Marcia finds that the net benefit of flying from Chicago to Honolulu on a non-stop United Airlines flight is $400, and the net benefit for the same trip flying on a one-stop American Airlines flight is $200 . c. Nikki decided to take the first available parking space as she entered the student lot. She felt that the first available space had a $5 premium on all other possible spaces since she did not want to risk being late for her exam. d. Reagan determined that the net benefit of taking the combination of two online courses and traditional lecture course was $100 . The same three courses online gave her a net benefit of $80; and all three in a lecture-based format gave her a net benefit of $10 .
The aggregate demand curve is negatively sloped because a lower price level
A) reduces the real money supply. B) increases the real money supply. C) reduces aggregate income. D) increases aggregate income.
One disadvantage of corporations is the double taxation of income to the owners
a. True b. False Indicate whether the statement is true or false