If all firms have the same costs of production, then in long-run equilibrium,
a. price exceeds average total cost for all firms.
b. price exceeds marginal cost for all firms.
c. some firms may earn positive economic profits.
d. all firms have zero economic profits and just cover their opportunity costs.
d
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________ is considered a high income country, ________ a developing country, and ________ a newly industrializing country
A) Canada; France; Singapore B) Honduras; New Zealand; South Korea C) Japan; Hong Kong; South Korea D) United States; Somalia; Taiwan
If incomes grow during the next year, what will happen in the market for RVs? (Assume that RVs are normal goods.)
What will be an ideal response?
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at 200 units; the firm is earning $400 profit. e. Stay at 200 units; the firm is minimizing losses of $200.
The blame for failing to address the budget deficits of the 1980s and early 1990s
A. is clearly the fault of the Republican administrations. B. is clearly the fault of the Democratic Congresses. C. is a political question rather than an economic question. D. is an economic question rather than a political question.