Because barriers to entry are low in competitive price-searcher markets, in the long run, a firm's price will be equal to
a. marginal revenue.
b. average total cost.
c. average variable cost.
d. average fixed cost.
B
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A firm would decide to shut down if its production resulted in
A) AFC > AVC. B) MR < AVC. C) ATC > AVC. D) MR < ATC.
Relative to the United States, the European Union antitrust law focuses more on all of the following except which one?
A) ethics B) furthering the social interest C) the leveling of the competitive playing field D) fairness
Refer to the table below. If the attorney reviews 53 patents, what is the expected cost of infringement?
The above table shows the quantity of patents reviewed by a firm's attorney and the corresponding probability that the firm will infringe on another firm's patent. The cost of infringement is $50,000.
A) $2,000
B) $35,000
C) $50,000
D) -$35,000
The necessity for choice, in economics, arises from
A. high incomes and many available goods. B. scarcity of economic means for satisfying economic wants. C. limited numbers of producers. D. All of the responses are correct.