A perfectly competitive firm's supply curve
A) shows the relationship between the price and the quantity the firm will produce.
B) is the portion of the marginal cost curve above the average variable cost curve.
C) is upward sloping.
D) All of the above are correct.
D
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Suppose the market demand for milk is Qd = 150 - 5P. Additionally, suppose that a dairy's variable costs are VC = 2Q2 (where Q is the number of gallons of milk produced each day), its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. What is the market equilibrium price?
A. $50 per gallon B. $20 per gallon C. $100 per gallon D. $25 per gallon
Developed countries have lost comparative advantage in
A) high-tech industries. B) labor-intensive industries. C) capital-intensive industries. D) agricultural industries.
Goods produced in the United States and sold in other countries are called
A) imports. B) foreign goods. C) capital goods. D) exports. E) capital account goods.
The optimal level of water and air quality
a. is zero, which is a pollution-free environment b. occurs when the marginal private cost of air quality equals its marginal social cost c. is greater if the marginal social cost curve of air quality shifts downward d. occurs when all negative externalities are eliminated e. eliminates the common pool problem