Under what condition is the long-run market supply curve for a competitive market perfectly elastic?
There must exist a large number of potential entrants, each with the same costs.
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Mutual funds that offer shares that are redeemable are referred to as
A) open-end. B) closed-end. C) negotiable. D) nonnegotiable.
Marginal profit is the profit
A. earned by a firm that is about to go out of business. B. calculated directly from the total cost curve. C. that is added by a one-unit increase in total output. D. earned for each dollar of cost increase.
Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. The quota will make total domestic producer surplus equal to
A) $2,500. B) $5,000. C) $5,000,000. D) $10,000,000. E) $30,000,000.
If a firm has a monopoly over the sale of camera drones and seeks to maximize profits, it:
A. adjusts the price of the product until demand becomes perfectly inelastic. B. will set the price of the product so that its marginal revenue equals its marginal cost. C. will set the price of the product equal to the marginal cost of production. D. will set the price of the product equal to the average total cost of production.