Which of the following statements is not true in a perfectly competitive industry in long-run equilibrium?
A. A profit-maximizing firm may produce any output level at which P < LRAC.
B. Every firm produces at an output level at which MC = LRAC.
C. There is no entry or exit from the industry.
D. No firm earns an economic profit.
Answer: A
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In the housing market, if a rent ceiling of $600.00 is imposed when the equilibrium rent is $500.00, why will nothing change?
What will be an ideal response?
Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?
a. Do not be provoked b. Do not be easily provoked c. Be easily provoked d. All of the above
Loss aversion occurs when:
A. the consumer's valuation of an outcome is less sensitive, per dollar, to small losses than to small gains. B. the consumer's valuation of an outcome is more sensitive, per dollar, to small losses than to small gains. C. the consumer's valuation of an outcome is more sensitive, per dollar, to large losses than to small gains. D. the consumer's valuation of an outcome is less sensitive, per dollar, to small losses than to large gains.
When workers are paid higher wages, production costs:
A. rise, supply shifts leftward, and product prices rise. B. rise, supply shifts leftward, and product prices fall. C. rise, supply shifts rightward, and product prices rise. D. fall, supply shifts rightward, and product prices fall.