Assume that the home construction industry is perfectly competitive and is in long-run competitive equilibrium. It follows that:
A. firms in the industry enjoy economic profits.
B. marginal cost exceeds long-run average total cost.
C. marginal cost equals long-run average total cost.
D. there will be incentive for new firms to enter the industry.
Answer: C
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All of the following affect the demand elasticity for labor EXCEPT
A) final product income elasticity. B) ease of substitution of labor for other inputs. C) final product price elasticity. D) labor costs as a portion of total cost.
An appreciation in the U.S. dollar benefits which of the following groups of people?
a. All people living in the United States. b. U.S. producers who export farm equipment to other countries. c. U.S. consumers who buy imported automobiles. d. Foreigners who wish to travel to the United States. e. U.S. consumers who buy only goods made entirely in the United States.
Salary Cap
What will be an ideal response?
Recall the Application about the short-run and long-run elasticity of supply of coffee to answer the following question(s). Recall the Application. In the long run, the supply curve for coffee is ________ and the elasticity of supply is ________ than in the short run.
A. steeper; larger B. steeper; smaller C. flatter; larger D. flatter; smaller