In a perfectly competitive market, a firm in long-run equilibrium will be operating
A. at the minimum of the marginal cost curve.
B. at the minimum of the long-run average cost curve.
C. to the left of the minimum of the long-run average cost curve.
D. to the right of the minimum of the long-run average cost curve.
Answer: B
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If the variable on the vertical axis increases by 20 and the variable on the horizontal axis increases by 5, the slope of the line is
A) 0.25. B) 4. C) 15. D) 100.
Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. If the lemonade market is perfectly competitive and Jenny is charging the equilibrium price, then Jenny can increase her revenue if she:
A. keeps the price of her lemonade the same and increases the output. B. decreases the price of her lemonade and doesn't change her output. C. increases the price of her lemonade and decreases her output. D. increases the price of her lemonade and doesn't change her output.
The process of taking advantage of market inefficiencies to earn profits is called:
A. arbitrage. B. technical analysis. C. a random walk. D. futures contracting.
An example of an information asymmetry is when a worker knows more than his employer about his work effort
a. True b. False Indicate whether the statement is true or false