Willie's Wading Adventures sells hip waders for fishing and duck hunting in a perfectly competitive market. If hip waders sell for $100 each and average total cost per unit is $95 at the profit-maximizing output level, then in the long run
a. more firms will enter the market.
b. some firms will exit from the market.
c. the equilibrium price per unit will rise.
d. average total costs will fall.
a
You might also like to view...
If the price of hot dogs increases, the demand for hot dog buns will
A) increase. B) decrease. C) remain constant. D) shift to the right.
According to the above table, which assumes that opportunity costs of producing goods X and Y are constant, the opportunity cost of producing one unit of Good X is ________ units of Good Y for Chen and ________ units of Good Y for Holly
A) 25; 100 B) 0.5; 2.5 C) 2; 0.4 D) 100; 25
Financial markets are important for bringing equilibrium to the loanable funds market, but do not affect the efficient allocation of scarce resources in the long-run
a. True b. False Indicate whether the statement is true or false
A business enterprise that allows the hiring of nonunion members conditional on their joining the union is
A) a closed shop. B) a union shop. C) a jurisdictional dispute. D) an industrial union.