Roger owns a small health store that sells vitamins in a perfectly competitive market. If vitamins sell for $12 per bottle and the average total cost per bottle is $11.50 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 bottle will rise
d. average total costs will rise.
a
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A trade policy designed to alleviate some domestic economic problem by exporting it to foreign countries is know as a(n)
A) international dumping policy. B) countervailing tariff policy. C) beggar thy neighbor policy. D) trade adjustment assistance policy. E) redistribution quota policy.
The above figure shows supply and demand curves for apartment units in a large city. If the city government passes a law that establishes $350 per month as the legal maximum rent, the loss in social welfare equals
A) b + c. B) f. C) a. D) f + g.
Total market supply can be derived by
A) horizontally summing individual supply curves at each and every price level. B) vertically summing individual supply curves at the current technology level. C) adding up the largest quantity demanded at various prices. D) looking at the changes in the price of raw materials needed to produce the product.
Any transaction that causes foreign exchange to enter a country is a
A. debit item in that country's balance of payments. B. debit item in that country's balance of trade. C. credit item in that country's balance of payments. D. credit item in that country's balance of trade.