The long-run equilibrium for a monopolistically competitive firm is to the left of the low point on its average total cost curve.
Answer the following statement true (T) or false (F)
True
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When your grandfather keeps a bundle of $100 dollar bills behind a brick in the basement, this is an example of dollars serving as:
A. a store of value. B. a medium of exchange. C. bank reserves. D. a unit of account.
Slick Shades has a constant marginal cost of production equal to $80 and the distributors have a constant marginal cost of distribution equal to $30. If Slick Shades is producing the profit-maximizing number of sunglasses (in hundreds) and charging the profit-maximizing wholesale price, what is the retail price?
The figure above shows the wholesale demand and marginal revenue curves for Slick Shades Sunglasses, a sunglasses firm with market power. Slick Shades Sunglasses has a constant marginal cost of production and it sells to perfectly competitive independent retail distributors that have a constant marginal cost of distribution.
A) $180
B) $170
C) $160
D) $200
If the equilibrium price of widgets is $22, and then a price ceiling of $24 is imposed by the government, as a result,
a. there will be no effect on the widget market.
b. there will be a shortage of widgets
c. there will be a surplus of widgets.
d. the price of widgets will increase.
Price equals the minimum of long-run average cost
A. in a short-run equilibrium as well as in a long-run equilibrium. B. in a long-run equilibrium. C. whenever average revenue equals marginal cost. D. along a horizontal long-run supply curve, but not along an upward sloping long-run supply curve.