The perfectly competitive firm's supply curve:
A) coincides with its perfectly elastic demand curve.
B) is perfectly inelastic at the market price.
C) is the firm's marginal cost curve above the minimum point on the AVC curve.
D) is the firm's average total cost curve above the shutdown point.
C
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The national debt can only be reduced if
A) the federal budget is in deficit. B) the federal budget is in surplus. C) there are no tax multiplier effects. D) the economy has a deflationary ga
Explain the difference between a positive production externality and a positive consumption externality
What will be an ideal response?
Gross domestic product is the
A) value of the final goods and services produced in a country during a specific time. B) total amount that buyers spent on the final goods and services produced in a country during a specific time. C) total amount of income earned in producing the final goods and services in a country during a specific time. D) All of the above answers are correct.
A portfolio of assets has lower risk than holding one asset, but the same expected return and higher transaction costs. Which of the following statements is most correct?
A. The portfolio is attractive to investors who are risk seekers. B. The portfolio is not attractive to investors who are risk-neutral. C. The portfolio is attractive to people who are risk-averse and risk-neutral, but not to risk seekers. D. The portfolio is attractive to investors who are risk-neutral.