In long-run equilibrium, output is expanded to the minimum long-run average total cost by:
a. perfectly competitive firms but not by monopolistically competitive firms.
b. monopolistically competitive firms but not by perfectly competitive firms.
c. both monopolistically competitive firms and perfectly competitive firms.
d. neither perfectly competitive firms nor monopolistically competitive firms.
a
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A government protection for an inventor that provides the inventor with the right to make use of her invention in any way she desires is
A) a trademark. B) an innovation. C) a patent. D) a copyright.
In the income-expenditure framework, if planned aggregate expenditures are greater than real gross domestic product (GDP), _____
a. the price level will fall b. consumption will fall c. inventories will increase d. inventories will decrease e. consumption will decrease
If the world supply of diamonds decreases, diamonds become more valuable, and therefore, the consumer surplus derived from diamonds increases
a. True b. False Indicate whether the statement is true or false
When economists say an individual displays economizing behavior, they simply mean that she is
a. making a lot of money. b. buying only those products that are cheap and of low quality. c. learning how to run a business more effectively. d. seeking the lowest cost method to accomplish her objectives.