Long-run equilibrium for a perfectly competitive industry occurs when:
A. P = MC = ATC.
B. P = MC = AVC.
C. P = MC = AFC.
D. P > MC = ATC.
Answer: A
You might also like to view...
Which of the following countries does not employ a value-added tax at the national level?
a. France b. German c. United States d. Canada
Which of the following workers would be most likely to work fewer hours as a result of a wage increase?
A. Farm worker B. Surgeon C. Lifeguard D. Bartender
According to Figure 17.7, a shift in the long-run aggregate supply from LRAS1 to LRAS2 would most likely result from
A. An increase in the money supply. B. A decrease in transfer payments. C. An increase in labor skills. D. An increase in government spending.
When one company is the sole seller of certain products in a market, it is called a:
A. government exclusive. B. monopoly. C. manipulation of the market. D. conglomerate.