What does the long-run average cost curve show?
A) the interaction between average fixed cost and marginal cost
B) the lowest average cost to produce each output level in the long run
C) the distinction between long-run fixed and long-run variable costs
D) the lowest average marginal cost of producing each output level at any time
E) Answers A, B, and C are correct.
B
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In the early decades of the 18th century, English goods sold for as much as 80 to 140 percent more in the colonies than in England primarily due to:
a. high tariffs on English goods imported to the colonies. b. a limited supply of English goods available for shipment to the colonies. c. high transportation costs for goods shipped from England to the colonies. d. legally established price floors on English goods sold in the colonies.
How much would the firm make in revenue if it chooses to sell only the high-end professional series?
a. $100 b. $110 c. $120 d. $130
Fixing a payment schedule in an agreement:
a. allows the seller to easily access loanable funds. b. increases the uncertainty associated with the cost of production. c. allows the seller to charge a high price for his product. d. ensures the delivery of goods at a high price.
To maximize its profit, a monopolistically competitive firm produces at the output level at which
A. its price elasticity of demand equals one. B. MR = MC. C. its D curve is tangent to its ATC curve. D. MR = AVC.