In the long-run equilibrium of a market with free entry and exit, marginal firms are operating
a. at the point where average variable cost equals marginal cost.
b. at the minimum point on their marginal cost curves.
c. at their efficient scale.
d. where accounting profit is zero.
c
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An increase in the minimum wage would lift relatively few poor people out of poverty
Indicate whether the statement is true or false
What is the main problem regulators face when setting a price for a natural monopoly?
a. It is difficult to determine the quantity and price that the monopolist wants to produce. b. It is difficult to determine what the monopolist’s marginal cost is. c. It is difficult to determine the quantity consumers want to buy at the monopolist’s price. d. It is difficult to determine the price that doesn’t bankrupt the firm but doesn’t overcharge consumers.
Countries that have lower levels of real GDP per person than the United States
a. tend to have growth rates that are higher than that of the United States. b. tend to have growth rates that are about the same as that of the United States. c. tend to have growth rates that are lower than that of the United States. d. in some cases have growth rates that are higher than that of the United States and in other cases lower than that of the United States.
The total costs of using a resource are made up of
A) private costs only. B) external costs only. C) social costs only. D) internal and private costs only.