The long-run equilibrium for a firm in an information product industry exists at a point at which
A) marginal cost equals marginal revenue.
B) the demand curve crosses the marginal cost curve.
C) the demand curve is tangent to the average total cost curve.
D) average total cost is minimized.
Answer: C
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When the Fed buys government securities
A) reserves increase, leading to a decrease in the money supply by an amount more than the purchase of the government securities. B) reserves increase, leading to a increase in the money supply by an amount more than the purchase of the government securities. C) reserves decrease, leading to a increase in the money supply by an amount more than the purchase of the government securities. D) reserves decrease, leading to a decrease in the money supply by an amount more than the purchase of the government securities.
When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level
A) positive; short-run B) negative; long-run C) positive; long-run D) negative; short-run
The problem of adverse selection is usually more acute in case of automobile insurance compared to health insurance
Indicate whether the statement is true or false
Changes in real GDP reflect only changes in the amounts being produced
a. True b. False Indicate whether the statement is true or false