Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium price is:
A) $2.
B) $3.
C) $4.
D) $5.
C
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When the economy is in long-run equilibrium, the price level adjusts so as to equate which two values with one another?
A) total planned real expenditures and total planned production B) government spending and tax revenues C) the inflation rate and the unemployment rate D) import and export spending
Unit excise taxes imposed on gasoline, alcohol, and cigarettes are
A) largely paid by the producers because they want to maintain their level of sales. B) largely paid by consumers because they are not very responsive to price changes. C) shared equally between the producer and the consumer. D) paid by the wholesalers of these products.
The perfectly competitive firm's total revenue curve
A) is linear and upward sloping. B) has a constant slope. C) has a positive slope. D) all of the above.
In the long-run equilibrium of a market with free entry and exit, marginal firms are operating
a. at the point where average variable cost equals marginal cost. b. at the minimum point on their marginal cost curves. c. at their efficient scale. d. where accounting profit is zero.