In long-run perfectly competitive equilibrium, marginal cost
A. Is less than ATC.
B. Equals the minimum of the AVC.
C. Equals the minimum of the ATC.
D. Is greater than ATC.
Answer: C
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Which of the following is a macroeconomic policy?
A. Requiring locks on all guns. B. Tax cuts to bring the federal budget into balance C. Regulations limiting automobile emissions. D. How an early freeze in California will affect the price of fruit.
The ________ suggests that the most important factor affecting the demand for domestic and foreign assets is the expected return on domestic assets relative to foreign assets
A) theory of portfolio choice B) law of one price C) interest parity condition D) theory of foreign capital mobility
When firms incur unplanned inventories, they typically
a. build new plants. b. call for more government spending. c. hire more workers and increase production. d. lay off workers and reduce production.
Johnny's Shop-and-Pay is a regional grocery chain, and their marketing manager is trying to determine the profit-maximizing coupon program for the store's laundry detergent brand
Coupon users at the store have an elasticity of demand for this product that equals -3, and the elasticity of demand for non-users of the coupon for the store brand equals -1.5. If the full retail (undiscounted) price of the detergent is $10 per box, what is the optimal discount to provide for coupon users? A) 25% off B) 50% off C) 75% off D) The optimal strategy is to charge the same price to both groups