Does a competitive long-run equilibrium require cost-minimization?
A) Yes, if firms fail to be as efficient as their competitors, they are driven out of the market.
B) No, in the long run, firms make zero profits.
C) Yes, if they didn't, even less efficient firms would enter the industry.
D) No, because competition ensures their survival.
A
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Refer to Table 1-2. What is Thuy Anh's marginal cost if she decides to stay open for an extra three hours instead of two hours?
A) $0 B) $16 C) $25 D) $32 E) $45
Most of the pressure for a monetary growth rule has disappeared because since 1980
A) the relationship between movements in interest rates and movements in real GDP and the price level have become much weaker. B) the relationship between movements in the money supply and movements in real GDP and the price level have become much stronger. C) the relationship between movements in the money supply and movements in real GDP and the price level have become much weaker. D) the relationship between movements in interest rates and movements in real GDP and the price level have become much stronger.
Assume the graph shown represents Grace's budget constraint. Which of the following is true?
A. Grace's total utility is constant along her budget constraint. B. Grace's total expenditure is constant along her budget constraint. C. Grace's marginal utility of each good is the same for each combination of goods on her budget line. D. Grace is indifferent between consuming any bundle that lies on the budget constraint.
In Figure 1.6, at which of the following points would the opportunity cost of producing one more car be the lowest?
A. D. B. C. C. B. D. F.