The return to the entrepreneur for organizing, producing, and risk-taking in the operation of the business is
a. rent.
b. equal to total revenue.
c. equal to total cost.
d. total profit.
d. total profit.
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In the long run, any perfectly competitive firm that produces will choose a quantity such that
A. price is greater marginal cost. B. long run marginal cost is less than short run marginal cost. C. short run average cost is minimized. D. long run total cost is minimized.
Average total cost is minimized at a higher level of output than average variable cost.
Answer the following statement true (T) or false (F)
If marginal costs are constant what will the average variable cost curve look like? What about the average total cost curve?
What will be an ideal response?
If in the short run prices did not respond at all to changes in aggregate demand, the short-run aggregate supply curve would
A) be vertical. B) be horizontal. C) slope up. D) slope down.