In a long-run perfectly competitive equilibrium,
a. the typical firm will earn an economic profit
b. price exceeds marginal cost
c. barriers to entry are established by entrenched firms
d. the typical firm will earn a normal profit
e. marginal cost exceeds average cost
D
You might also like to view...
Jane is willing to pay $50 for a pair of shoes. The actual price of the shoes is $30. Her consumer surplus on this pair of shoes is
A) $20. B) $50. C) $30. D) $80.
Based on the above figure, at which level of output does diminishing marginal returns first occur at Ike's Ice Cream Kitchen?
A) at 0 gallons B) at 10 gallons C) at 40 gallons D) at 60 gallons
Restricting imports usually leads to
A) a country producing beyond its production possibilities frontier. B) a country consuming even further beyond its production possibilities frontier. C) a reduction in exports and employment. D) a higher per capita level of real consumption.
If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index falls, and real GDP falls. b. Price index falls, and the change in real GDP is uncertain. c. The change in price index is uncertain, and real GDP rises. d. The change in price index is uncertain, and real GDP falls. e. Neither the price index nor real GDP changes.