In a perfectly competitive market, a firm in long-run equilibrium will be operating
A) to the right of the minimum of the long-run average cost curve.
B) to the left of the minimum of the long-run average cost curve.
C) at the minimum of the long-run average cost curve.
D) at the minimum of the marginal cost curve.
C
You might also like to view...
The situation in which short-term interest rates are pushed to zero, leaving the central bank unable to lower them further is known as
A) an interest rate panic. B) the Taylor rule. C) a zero-sum game. D) a liquidity trap.
A disadvantage of unit excise taxes is they create the incentive _____
a. for producers to favor smaller products over larger products b. for producers to favor expensive products over inexpensive products c. for buyers to purchase more of the good then they otherwise would d. for buyers to shift to substitute goods with ad valorem excise taxes
What type of business is most likely to be run as a family business?
a. multinational b. corporation c. partnership d. mutual fund e. sole proprietorship
An increase in the price of gasoline shifts the demand for tires to the
a. left, because gasoline and tires are substitutes. b. left, because gasoline and tires are normally used together. c. right, because gasoline and tires are substitutes. d. right, because gasoline and tires are normally used together.