Which of the following holds true at the chosen level of output in the long run for firms in a perfectly competitive market?
A. P = MC
B. P = minimum AVC
C. MR = AVC
D. MR > ATC
A. P = MC
You might also like to view...
Macland can produce 150 sweaters or 75 bushels of rice. Microland can produce 50 sweaters or 50 bushels of rice. What country has a comparative advantage in rice?
a. Macland and Microland can produce rice at the same opportunity cost. b. Macland can produce rice at a lower opportunity cost. c. Microland can produce rice at a lower opportunity cost. d. Microland can produce rice at a higher opportunity cost
Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?
A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall. B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase. C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged. D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.
Assume that labor and capital are substitutes in production. If there is an increase in the price of capital, how can this lead to either an increase or decrease in the demand for labor?
What will be an ideal response?
Refer to the data provided in Table 11.3 below to answer the following question(s). Table 11.3ProjectTotal InvestmentExpected Rate of Return(dollars) (percentage)New computer for sales staff $250,00011Remodel for distribution center$200,000 9On-site day care center $100,000 5Employee fitness center$50,000 4Refer to Table 11.3. If the interest rate is 14%, Blackstar Drone Manufacturing should
A. fund all of the projects. B. fund only the purchase of new computers for its sales staff. C. fund the remodeling of the distribution center and the on-site day care center. D. not fund any of the projects.