Because market price always tends back to the minimum average total cost for all identical firms in a perfectly competitive market in the long run, in theory:
A. the supply will remain a constant quantity.
B. price will be the same at any quantity.
C. the supply curve will be upward sloping.
D. the supply curve may be downward sloping.
B. price will be the same at any quantity.
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Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PIf the United States engages in free trade and the international price of skateboards is $75, it would import ________ skateboards from the rest of the world.
A. 95 B. 85 C. 65 D. 75
Expansionary monetary policy would shift the
A. aggregate supply curve up and to the left. B. aggregate demand curve to the right. C. aggregate supply curve down and to the right. D. aggregate demand curve to the left.
Exchange rates that are allowed to fluctuate in the open market in response to changes in supply and demand are known as
A. fixed exchange rates. B. flexible exchange rates. C. gold exchange rates. D. IMF exchange rates.
GDP estimates account for which of the following items?
A. Do-it-yourself activities B. "Psychic income" people derive from their work C. Household spending for health and home insurance D. Improvements in product quality