When all firms and potential firms in a market have the same cost curves, the long-run equilibrium of a competitive market with free entry and exit will be characterized by firms
a. earning small but positive economic profits.
b. facing the prospect of future losses.
c. operating at the efficient scale.
d. that work together to raise market prices.
c
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Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. If the market price is 4 cents per page, what is Fast Copy's economic profit?
A) zero B) between 0 and $0.50 per hour C) between $0.51 and $1.00 per hour D) more than $1.00 per hour
What is the lowest price at which a firm produces an output? Explain why
What will be an ideal response?
Which of the following variables will not cause the market supply curve of labor to shift?
A) a change in the labor participation rate of women B) an increase in the number of people between the ages of 16 and 65 C) increases in population D) a favorable change in consumer tastes
Other Significant Entities Contributing to Federal Reserve Functions
What will be an ideal response?