The long-run equilibrium condition for perfect competition is:
A. P = AVC = MR = MC.
B. P = ATC = MR = MC.
C. Q = AVC = MR = MC.
D. Q = ATC = MR = MC.
Answer: B
You might also like to view...
Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed below.CustomerReservation Price($/Rental)A22B16C12D8E6F4 If Island Bikes charges a single price to all of its customers, then what will be its daily economic profit?
A. $26 B. $36 C. $27 D. $33
Would you expect the income elasticity of demand for Cadillacs to be positive or negative? Why is this true?
What will be an ideal response?
Is it likely that oligopolistic firms will be in both a kinked demand curve situation and also engage in price leadership? Why or why not?
The term "economic rent" refers to payments
A. for the use of housing in company owned properties. B. to owners of real estate. C. equal to the opportunity cost of the use of land. D. for the use of any resource above its opportunity cost.