In the long run, entry and exit in a perfectly competitive market will drive the price to the point where the:
a. marginal cost curve intersects the average total cost curve at its minimum
b. marginal cost curve intersects the marginal revenue curve.
c. marginal cost curve intersects the average variable cost curve at the shutdown point.
d. marginal cost curve intersects the market demand curve.
a
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Use the information in the table below.Total salesIndustry 1Firm 1$5.3mFirm 2$199,000Firm 3$2.6mFirm 4$850,000What percent of total sales does Firm 1 make up in Industry 1?
A. 89% B. 53% C. 59% D. 25%
Critics of the Phillips curve argue that in the long run
A) there is no trade-off between inflation and unemployment because workers' expectations adjust to any systematic attempts to reduce unemployment below the natural rate. B) employees are not able to anticipate future rates of inflation, and therefore unemployment can always be reduced by inflating the economy. C) there is a trade-off between unemployment and inflation. D) for any given unemployment level there is a corresponding inflation rate to which the economy will automatically revert.
To calculate GDP it is necessary to
A) add the total amounts of all the goods produced. B) use production cost to place a dollar value on all goods produced. C) average the cost of producing a good with the price of the good to place a dollar value on all goods produced. D) use the market price to place a dollar value on each good produced. E) use the average market price over the last five years to place a dollar value on all goods produced.
The marginal social benefit curve from a public good is found by horizontally summing the marginal benefit curves of all individuals
Indicate whether the statement is true or false