Which of the following is TRUE in perfect competition at long-run equilibrium?
A) P = ATC = MC = MR
B) ATC is minimized.
C) Economic profit is $0.
D) all of the above
Answer: D
You might also like to view...
Under competition, the price of a resource reveals
a. information about the past, but not future, uses of a resource. b. the most valuable way to use the resource. c. how much the resource is worth in the most valuable of its alternative uses. d. the value of the labor needed to fully exploit the resource.
Which of the following correctly explain Ricardian equivalence?
a. Government spending that is financed by borrowing has a smaller effect on the economy than government spending financed by raising taxes. b. Consumers do not base current spending on future expected tax liabilities. c. Government borrowing can function like increased current taxes, reducing current household and business expenditures. d. The government should balance its budget by equating revenue and expenditure in every fiscal year. e. Government spending does not crowd out private investment.
Under a system of flexible exchange rates, an increase in demand for a nation's currency in the foreign exchange market will: a. cause the nation's currency to appreciate
b. make it more expensive for the nation to import goods. c. cause the nation's balance on current account to shift toward a deficit. d. make it less expensive for foreigners to buy the nation's goods.
If an economy has to sacrifice only one unit of good X for each unit of good Y produced throughout the relevant range, then its production possibilities curve has a(n):
A) zero slope. B) constant, negative slope. C) increasing, negative slope. D) decreasing, negative slope.