In a long-run perfectly competitive equilibrium
A. P = MR > MC = ATC.
B. P = MR = MC = ATC.
C. P = MR = MC > ATC.
D. P > MR > MC = ATC.
Answer: B
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In 2010, of the following ________ had the highest real GDP per person
A) Japan B) Canada C) the Europe Big 4 countries D) the United States
If supply increases and demand decreases
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls. B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.
In the past several decades, U.S. health care expenditures have:
A. risen absolutely but declined as a percentage of GDP. B. declined absolutely but risen as a percentage of GDP. C. risen absolutely and as a percentage of GDP. D. declined absolutely and as a percentage of GDP.
A farmer has many competitors and exists in a market structure known as perfect competition. This means that price is determined outside of the individual farmer's ability to charge a price higher than the going market for a bushel of wheat, hence the farmer is
A. a price maker and can therefore charge different customers different prices. B. never able to sell anything for any prices he charges. C. a price taker and cannot affect the market price of wheat. D. always able to price produce above the competition and earn a larger profit.