In the long run, firms in a perfectly competitive market produce:
A. at a quantity with positive economic profits.
B. where average variable costs are minimized.
C. where MC is at its lowest point.
D. where price equals marginal cost.
Answer: D
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Many predict there will be permanent, growing shortages of oil by the year 2025. The prognosticators are assuming
A) oil prices will fall. B) oil prices will not adjust appropriately to coordinate the market. C) oil prices will rise. D) greed will ruin the supply and demand process in the world oil market.
Between 1984 and 1989, the S&P 500 index more than ________, and between 1994 and 2000 it ________
A) doubled; tripled B) tripled; doubled C) doubled; decreased D) tripled; decreased
See Scenario 4.1. What is Daniel's income-consumption curve?
A) Pc = Pd B) Pc = Qc C) Qd = I - 3Qc D) Qc = Qd E) all of the above
If the demand curve is more elastic than the supply curve, then:
A. the buyers will bear a greater tax incidence than sellers. B. the sellers will bear a greater tax incidence than buyers. C. tax incidence will be shared equally by buyer and seller. D. None of these is true.