Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. Which of the following is correct?
A. The diagrams portray neither long-run nor short-run equilibrium.
B. The diagrams portray both long-run and short-run equilibrium.
C. The diagrams portray short-run equilibrium but not long-run equilibrium.
D. The diagrams portray long-run equilibrium but not short-run equilibrium.
C. The diagrams portray short-run equilibrium but not long-run equilibrium.
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The principle of diminishing marginal utility implies that the
A) marginal utility of a product is negative. B) total utility from a product is also diminishing as more units are consumed. C) rate of change of total utility is diminishing as more units are consumed. D) rate of change of marginal utility is very low as more units are consumed.
From an initial IS-LM equilibrium with a normally-sloped IS curve and a vertical LM curve, the money supply increases. A the new IS-LM equilibrium we have
A) higher income and a lower interest rate. B) higher income and an unchanged interest rate. C) an unchanged income and a lower interest rate. D) lower income and an unchanged interest rate. E) an unchanged income and a higher interest rate.
Average product curve tells us:
A. the level of inputs that are the most productive. B. the cost-minimizing level of inputs to hire. C. the profit-maximizing level of inputs to hire. D. All of these are true.
Imposing an entry fee on a public park will: a. increase the number of free riders
b. decrease the number of free riders. c. reduce the benefit received by society. d. increase the marginal cost borne by society.