When an average total cost pricing rule is enforced, average total cost equals ________
A) marginal revenue
B) total revenue
C) price
D) average total cost
C
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If the United States imposed a quota on the amount of salmon imported from Chile, the result would be ________ salmon prices in the United States and ________ in the quantity of salmon demanded in the United States
A) higher; an increase B) higher; a decrease C) lower; an increase D) lower; a decrease E) higher; no change
In the long run, perfectly competitive firms cannot earn an economic profit
Indicate whether the statement is true or false
What is the one thing that all firms in an imperfectly competitive market have in common?
What will be an ideal response?
From a public choice viewpoint, the persistent budget deficits of recent decades are
a. surprising, because politicians have a strong incentive to balance the government's budget. b. an expected result, because the political incentive structure makes it attractive for politicians to levy taxes rather than spend on current programs. c. surprising, because politicians have a strong incentive to run budget surpluses and thereby indicate that their actions have generated a profit. d. an expected result, because the political incentive structure makes it attractive for politicians to spend on current programs rather than levy taxes.