If a purely competitive firm is in short-run equilibrium and its marginal cost exceeds its average total cost, we can conclude that:
A. this is a decreasing-cost industry.
B. firms will exit the industry in the long run.
C. firms will enter the industry in the long run.
D. this is an increasing-cost industry.
Answer: C
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The type of commercial policy followed by England under the navigation laws
(a) was followed throughout the 17th and 18th centuries but not by any governments today. (b) was followed throughout the 17th and 18th centuries and is still pursued, in one way or another, by all governments in the world today. (c) was followed throughout the 17th, 18th, and 19th centuries but not by most governments today. (d) was followed throughout the 17th and 18th centuries and by European governments today, but not by the United States since the founding of the nation.
When buying a piece of equipment, it is always best for the firm to pay cash instead of borrowing the funds since this renders the equipment less costly
Indicate whether the statement is true or false
The real value of any variable is its nominal value:
A. adjusted for inflation. B. holding the base constant. C. adjusting for income. D. holding the basket constant.
In 1998 the Russian government defaulted on its bonds. According to the open-economy macroeconomic model, this should have
a. increased Russian interest rates and net exports. b. reduced Russian interest rates and net exports. c. increased Russian interest rates and reduced Russian net exports. d. reduced Russian interest rates and increased Russian net exports.