In the long-run equilibrium of a competitive market, the number of firms in the market adjusts until the market demand is satisfied at a price equal to the minimum of
a. average fixed cost for the marginal firm.
b. marginal cost of the marginal firm.
c. average total cost of the marginal firm.
d. average variable cost of the marginal firm.
c
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If a job requires two activities and there are two workers who can perform those activities, then which of the following statements regarding absolute advantage must be false?
a. One worker can have an absolute advantage in both activities. b. One worker may not have an absolute advantage in neither activity. c. Neither worker can have an absolute advantage in either activity. d. Both workers can have an absolute advantage in both activities.
In a perfectly competitive industry
A. economic profits may exist in the short run but not in the long run. B. economic profits may persist in the long run if consumer demand is strong and stable. C. no economic profits can exist in either the short run or the long run. D. economic profits may exist in the long run but not in the short run.
Assume the market shares of the six largest firms in an industry are 12 percent each. Calculate the six-firm concentration ratio and Herfindahl-Hirschman index for this industry
What does each of these measures have to say about the degree of concentration in the industry? Explain.
Stock and Watson found that monetary policy was responsible for about ________% of the reduction in output volatility that occurred in the mid-1980s.
A. 30 to 40 B. 20 to 30 C. 10 to 20 D. 0 to 10