Because market price always tends back to the minimum average total cost for all identical firms in a perfectly competitive market in the long run, in theory:
A. price will be the same at any quantity.
B. the supply curve may be downward sloping.
C. the supply will remain a constant quantity.
D. the supply curve will be upward sloping.
Answer: A
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Bill loses his job as a loan officer when the bank he works for is bought up by a larger financial institution. Bill has the skills necessary to find a new job, so as Bill searches for work he is best considered an example of
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) a discouraged worker.
Is it possible for the average fixed cost curve to have the shape depicted above? Explain
What will be an ideal response?
A United States government patent lasts
A) forever. B) 50 years. C) 20 years. D) 7 years.
In the United States, loans from ________ are far ________ important for corporate finance than are securities markets
A) government agencies; more B) government agencies; less C) financial intermediaries; more D) financial intermediaries; less