Which of the following conditions is true for a purely competitive firm in long-run equilibrium?
A. P > MC = minimum ATC.
B. P > MC > minimum ATC.
C. P = MC = minimum ATC.
D. P < MC < minimum ATC.
Answer: C
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Which of the following would shift the supply curve for coffee to the right?
a. An innovation in agricultural techniques that allows growers to produce coffee less expensively. b. A late frost in Brazil that destroys 75% of its coffee bean crop. c. An increase in the wages paid to coffee bean pickers. d. A rise in the popularity of espresso, cappuccino, and other exotic coffee drinks.
An increase in ________ increases potential GDP and ________ aggregate supply
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A. ?L = $192; ?F = $91. B. ?L = $56; ?F = $28. C. ?L = $56; ?F = ?$28. D. ?L = $384; ?F = $192.
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