Which of these will hold true for an unregulated, competitive industry?
A. The market price will be lower than the marginal cost of production.
B. The marginal cost will be higher than the average cost of production.
C. The marginal cost of production will be equal to the market price.
D. The market price will be higher than the marginal cost of production.
Answer: C
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Which of the following factors influence the position of the long-run aggregate supply curve?
A) government spending B) the supply of money C) the level of full-employment output D) taxes
All else being equal, a permanent decrease in the saving rate in a steady-state economy would cause
A) an increase in the capital—labor ratio and an increase in consumption per worker. B) an increase in the capital—labor ratio and a decrease in consumption per worker. C) a decrease in the capital—labor ratio and a decrease in consumption per worker. D) a decrease in the capital—labor ratio and an increase in consumption per worker.
In the simultaneous move labor negotiation game:
a. Neither party prefers bargaining hard in the Nash equilibrium b. Both the parties want to end up in the least efficient outcome c. Both parties bargain hard in the Nash equilibrium d. Both parties want to stay in the prisoner's dilemma
A shipping company can buy either a new truck or a used truck. Each truck will generate $4,000 in net revenue per year. But the new truck has a useful life of three years, whereas the used truck has a useful life of only two years. If the interest rate is 5 percent (0.05) per year, what is the difference in value between the two trucks? (Assume that each year's revenue is received at the end of
the year.) a. $0 b. $4,000.00 c. $3,455.35 d. $1,185.19 e. $8,000.00