Using the above figure, the price facing the perfectly competitive firm in the long run will be
A) P1.
B) P2.
C) P3.
D) P4.
C
You might also like to view...
First-dollar health insurance reduces the:
A. marginal benefit of medical care to the insured. B. total cost of providing medical care. C. equilibrium amount of medical care received by the insured. D. marginal cost of medical care to the insured.
The characteristic of ease of entry and exit ensures that perfectly competitive firms will be able to earn positive economic profits over the long run
Indicate whether the statement is true or false
Government policies that encourage savings
A) reduce interest rates. B) increase interest rates. C) have no effect on interest rates. D) lower the net present value of all investments.
A reduction in government taxes causes:
a. The monetary base to either rise or fall, depending on the state of the economy. b. No change in the monetary base. c. The monetary base to fall. d. The monetary base to rise.