For a perfectly competitive market, long-run equilibrium is characterized by all of the following but which one?
A. P = maximum ATC.
B. P = minimum ATC.
C. P = MC.
D. P = MR.
Answer: A
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What are the types of institution banks used to conduct foreign business?
A) corporations B) central banks C) commercial banks D) agency offices, subsidiary banks, and foreign branches E) state-owned enterprises
According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in
A) a shortage of 30 million gallons. B) an increase in quantity demanded of 10 million gallons. C) an increase in quantity supplied of 20 million gallons. D) an increase in demand of 20 million gallons.
In short-run equilibrium, a perfectly competitive firm
a. may earn a profit or a loss. b. always earns a profit. c. never earns a profit. d. earns a profit only if the firm has no fixed cost.
A firm is experiencing ________ on the upward-sloping portion of a firm's long run average cost curve.
A. diminishing marginal returns B. decreasing returns to scale C. increasing returns to scale D. constant returns to scale