In long-run equilibrium under perfect competition
a. price will equal minimum average fixed cost
b. firms will earn economic profits due to the existence of barriers to entry.
c. the demand curve facing individual firms will fall to the level tangent to the minimum average total cost curve.
d. firms will produce at the level of output where marginal revenue exceeds marginal cost by the greatest dollar amount.
c
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Higher efficiency in the economy can be reached if prices are held low by law
a. True b. False Indicate whether the statement is true or false
The market level of rent
a. is entirely determined by the demand side. b. is determined by its elastic supply. c. is difficult to determine because of shifts on the supply side. d. generally settles at levels below any rent controls favored politically.
Productivity is a measure of:
A. quantity of output per worker. B. how hard individuals work, not how much they produce. C. the amount of human capital workers obtain through training and experience. D. the amount of capital per worker.
When a new firm begins production in the ________ model, it assumes its demand curve is the market demand less the amount the other firm is selling.
A. price leadership B. Cournot C. collusion D. cartel