Which of the following is the set of conditions necessary for long-run equilibrium for a perfectly competitive firm?
A. P = SRMC = SRAC > LRAC
B. P = SRMC < SRAC = LRAC
C. P > SRMC = SRAC = LRAC
D. P = SRMC = SRAC = LRAC
Answer: D
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Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the firm is making an accounting profit of $3000 . What is the firm's total costs?
a. $10,000 b. $11,000 c. $12,000 d. $13,000
Supply-side policies are focused on ______.
a. short-run stabilization b. both short and long-run stabilization c. increasing long-run industry regulation d. decreasing long-run aggregate supply
Any improvement in overall production technology that produces more output with the same level of inputs causes
A. a rightward shift of the supply curve so that more is offered at each price. B. no movement of the supply curve, but a fall in price and a decrease in quantity supplied. C. a movement up the supply curve resulting in both a higher equilibrium price and quantity. D. a leftward shift of the supply curve so that less is offered for sale at each price.
The rationale for exchange rates determining AD is with
A. weaker dollar exports, AD will rise. B. stronger dollar exports, AD will rise C. stronger dollar imports, AD will rise. D. weaker dollar imports, AD will rise.