In a competitive market the current price is $6 . The typical firm in the market has ATC = $5.00 and AVC = $4.50
a. In the short run firms will shut down, and in the long run firms will leave the market.
b. In the short run firms will continue to operate, but in the long run firms will leave the market.
c. New firms will likely enter this market to capture some of the economic profits.
d. The firm will earn zero profits in both the short run and long run.
c
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In 2014, net exports in the United States were
A) zero. B) positive. C) negative. D) greater than personal consumption expenditures.
Stan owns a software design business. He does not have time to expand his office space or redesign the layout of his office
He can increase the amount of work he does by working more hours, asking his current employees to work more hours, or hiring more employees. The relationship between Stan's inputs and the maximum output his firm can produce is called his A) short-run production function. B) cost function. C) long-run production function. D) production possibilities frontier.
The monopoly supply curve is the
A) same as the competitive market supply curve. B) portion of marginal costs curve where marginal costs exceed the minimum value of average variable costs. C) result of market power and production costs. D) none of the above
Things that cause supply curve to shift?
What will be an ideal response?