In long-run equilibrium, a perfectly competitive firm's short-run marginal cost curve crosses the long-run average cost curve at the lowest point on the long-run average cost curve
a. True
b. False
Indicate whether the statement is true or false
True
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Super Haulers is a hauling company and delivers large and heavy materials to construction job sites. Super Haulers is considering purchasing a new dump truck that costs $185,000 and the managers of Super Haulers have estimated that the new dump truck will generate $50,000 a year in future operating profit for the next four years. At the end of four years, Super Haulers can sell the dump truck at
a salvage price of $20,000. If the discount rate is 5 percent, which of the following is true if the managers of Super Haulers are profit-maximizing? A) The manager should not make the investment because the net present value is negative. B) The manager should make the investment because the net present value is positive. C) The manager should make the investment because the net present value is negative. D) The manager should not make the investment because the net present value is positive.
The tasks performed by the chef at your favorite restaurant could be categorized as
A. a service or intangible good. B. an economic good. C. a good. D. All of the above are correct.
Consider a market characterized by the following inverse demand and supply functions: PX = 10 - 2QX and PX = 2 + 2QX. Compute the surplus received by consumers and producers.
A. $2 and $6, respectively. B. $24 and $24, respectively. C. $6 and $2, respectively. D. $4 and $4, respectively.
Over the next 15 years, ___ out of every 10 people added to the world's population will be born in developing countries
A. 6 B. 7 C. 8 D. 9