If in a perfectly competitive industry, the market price facing a firm is below its average total cost but above average variable cost at the output where marginal cost equals marginal revenue
A) the industry supply will not change. B) firms are breaking even.
C) some existing firms will exit the industry. D) new firms are attracted to the industry.
C
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To maximize welfare in a competitive market that has a negative externality in production, government should tax a pollution-generating good at a specific tax equal to the marginal cost of producing the good
Indicate whether the statement is true or false
Which of the following is likely protected by copyright?
A) Your recipe for chocolate cake B) Your autobiography C) The color scheme for your house D) The names of your children
The demand curve for the product of a monopolistic competitor
A. is horizontal. B. is vertical. C. is the same as the market demand curve. D. slopes downward.
Marginal resource cost is:
A. The increase in a firm's total cost caused by hiring one additional unit of an input B. A firm's cost of hiring one group of inputs, such as capital or labor C. The firm's demand curve for a productive resource D. Determined by the marginal physical product schedule for an input