In a long-run equilibrium, the marginal firm has
a. price equal to average total cost.
b. total revenue equal to total cost.
c. economic profit equal to zero.
d. All of the above are correct.
d
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An increase in the supply of labor will ________ real wages and ________ employment
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Refer to the table below. If the cost per unit of advertising is constant at $750, what is the level of advertising per week that maximizes the industry joint profit?
Suppose the egg industry is made up of only the three farms above; Happy Chickens, Special Chickens, and Superior Chickens.
A) 4
B) 2
C) 3
D) 1
The demand for dishwashers facing the AllClean Co. is given in the figure above. The firm manufactures dishwashers in two plants. MC1 and MC2 are the marginal cost curves for those two plants. How many dishwashers should the firm produce?
A. 40 B. 50 C. 70 D. 80 E. 100
Refer to the diagram where xy is the relevant budget line and I 1 , I 2 , and I 3 are indifference curves. At point K:
A. MU x = MU y .
B. MRS = P x /P y .
C. MRS = P y /P x .
D. P x exceeds P y