Which of the following holds true at the chosen level of output in the long run for firms in a perfectly competitive market?
A. P > MC
B. P = minimum AVC
C. MR = MC
D. MR > MC
A. P > MC
You might also like to view...
An enterprise that has only one shareholder does not constitute a corporation
a. True b. False Indicate whether the statement is true or false
If there are two goods and two countries, then one country can have
A) a comparative advantage in only one good. B) a comparative advantage in both goods. C) a higher opportunity cost of producing both goods. D) a lower opportunity cost of producing both goods.
Refer to the information provided in Table 13.3 below to answer the question(s) that follow. Table 13.3Price ($)Quantity4.001003.502003.003002.504002.005001.506001.00700Refer to Table 13.3. If a monopoly faces the demand schedule given in the table, what is its marginal revenue from the 200th unit it sells?
A. $2 B. $3 C. $3.50 D. $300
A major advantage of built-in or automatic stabilizers is that they
a. guarantee the federal budget will be balanced over the course of the business cycle. b. require no Congressional action to be effective. c. automatically produce surpluses during recessions and deficits during inflation. d. require discretionary actions on the part of Congress before they exert an impact on output and employment.