If a firm in a perfectly competitive industry is experiencing average revenues greater than average costs, in the long-run
a. Some firms will leave the industry and price will rise
b. Some firms will enter the industry and price will rise
c. Some firms will leave the industry and price will fall
d. Some firms will enter the industry and price will fall
d
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If a professional association restricts membership and firms cannot employ nonassociation workers, the equilibrium wage will increase
a. True b. False
Monetarists believe that
a. velocity is constant b. velocity is highly predictable c. there are three motives for demanding money d. changes in the money supply cause changes in velocity e. a change in the money supply can affect real GDP
Our money supply has _____ basic jobs to perform.
A. one B. two C. three D. four
Figure 6.1 shows the cost structure of a firm in a perfectly competitive market. If the market price is $40 and the firm is currently producing the profit-maximizing output level, its total fixed cost is:
A. $2,800. B. $5,200. C. $7,200. D. $9,000.