A perfectly competitive firm produces 50 units of output, at equilibrium, in the short run. The total cost borne by the firm is $300 and the average revenue is $2 . Therefore, the firm:
a. is just breaking even.
b. is earning positive profits.
c. is facing a positively sloped demand curve.
d. is suffering losses.
e. is experiencing diseconomies of scale.
d
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Which of the following statements is true?
A) An individual's future spending decreases when he lends money. B) An individual's future spending increases when he borrows money. C) An agent borrows to move his spending from the future to the present. D) An agent borrows to move his spending from the present to the future.
At the end of an expansion, wages of workers are usually rising faster than prices
Indicate whether the statement is true or false
The difference between what consumers have to pay for a particular and what they are willing to pay is known as
A) consumer surplus. B) producer surplus. C) deadweight costs. D) deadweight surplus.
If a perfectly competitive industry's long-run supply curve is downward sloping, we can conclude that input prices will:
a. increase as industry output increases. b. decrease as industry output increases. c. remain constant as industry output increases. d. none of these conclusions can be drawn.