In the long run, under conditions of perfect competition, the buyer will eventually be able to buy the product at a
a. price equal to the lowest point on the ATC curve past the optimal scale of operation.
b. price below cost.
c. price equal to the lowest point on the ATC curve at the optimal scale of operation
d. discount.
c. price equal to the lowest point on the ATC curve at the optimal scale of operation
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All the countries of the EU participate in the Schengen Agreement
Indicate whether the statement is true or false
Suppose favorable weather conditions temporarily raise the marginal productivity of existing capital. Weather conditions are expected to return to normal next year, so there is no change in the expected marginal productivity of future capital. In this situation, the interest rate will
a. rise. b. fall. c. remain unchanged. d. react unpredictably.
Correcting a market with an externality through taxation is ________ correcting it through a quota.
A. less efficient than B. more efficient than C. just as efficient as D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
The effect of legislation establishing a minimum wage above the market clearing wage is
A. a shift of the demand for labor curve. B. higher wages for all workers. C. unemployment. D. a shortage of labor.