Which of the following is true of long-run equilibrium in a perfectly competitive market?
a. At the profit-maximizing price, average total cost is at its lowest
b. At the profit-maximizing price, marginal cost is at its lowest.
c. At the profit-maximizing price, average total cost is rising.
d. At the profit-maximizing price, average total cost exceeds marginal cost.
a
You might also like to view...
A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
Which of the following is true regarding the effect of deficits from 1980-2005 in the U.S.?
a. They did not lead to substantial inflation because the Fed did not monetize the deficits. b. They did not lead to substantial inflation because the Fed did monetize the deficits. c. They led to substantial inflation because the Fed did not monetize the deficits. d. They led to substantial inflation because the Fed did monetize the deficits.
A profit-maximizing restaurant owner will hire more busboys to keep more tables clean and quickly available to new customers, as long as the
a. marginal product of busboys exceeds the marginal product of other employees. b. hourly wage of busboys is lower than that of cashiers and cooks. c. marginal revenue product of busboys exceeds their wage rate. d. wage of busboys exceeds the wage of other employees.
When two goods are substitutes for each other, the cross price elasticity of demand
A) will be negative. B) will be zero. C) may be either positive or negative. D) will be positive.