In a perfectly competitive market, the price is currently above the minimum of each firm's long-run average total cost curve. Which of the following statements is correct?
a. The long-run average total cost curve will shift upward in the long run.
b. Firms will alter their plant size in the short run.
c. The market price will fall in the long run.
d. The firms must be producing at an output level where price exceeds short-run marginal cost.
e. The firms will earn above-normal profit in the long run.
C
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By reducing prices, competition encourages ________ transactions, which generates ________ cooperative surplus
A) more; more B) more; less C) less; more D) less; less
If the growth rate of population is greater than a nation's growth rate of real GDP, then its real GDP per person
A) falls. B) rises. C) does not change. D) might rise, fall, or not change. E) cannot be measured.
Economists must actually measure the utilities of goods to determine demand
Indicate whether the statement is true or false
Per capita income in the United States in 2010 was about:
A. $25,300 per person B. $36,300 per person C. $47,300 per person D. $59,300 per person