Tommy's Tires operates in a perfectly competitive market. If the market price equals $50 per tire and ATC = $60 per tire at the profit-maximizing level of output, then in the long run
a. more firms will enter the market
b. the market supply curve will shift to the right
c. the equilibrium price per tire will fall
d. average total costs will rise
e. the market supply curve will shift to the left
E
You might also like to view...
If you have $5000 and the GDP deflator decreases from 100 to 80
A) the $5000 will buy 20 percent more of the goods and services produced by society. B) the value of the $5000 remains constant. C) the $5000 will buy 20 percent less of the goods and services produced by society. D) the value of the $5000 decreases.
The order of the letters along the rows of computer keyboards could be changed to allow users to type faster, but this would inconvenience the vast majority of people who learned to type with the current keyboard layout
The costs of switching to a new layout make this change unlikely. This is an example of A) how consumers sometimes do not behave rationally. B) how the elasticity of demand for typewriters has been affected by externalities. C) path dependency. D) how social influences overwhelm the substitution effect of a price change.
A profit-maximizing firm will hire workers up to the point at which
A) MRP < MFC. B) MRP = MFC. C) MRP > MFC. D) MRP = MPP.
Workers in industrial countries earn much higher wages than workers in developing countries because:
a. the industrial countries are labor rich and capital poor economies. b. the industrial countries lack a steady supply of unskilled laborers. c. the industrial countries produce labor intensive goods. d. the marginal productivity of labor is low in the industrial economies. e. the marginal productivity of labor is high in the industrial economies.