In perfect competition, P = MC is the condition that
A. ensures that firms produce the right things.
B. holds only in the long run.
C. guarantees that firms will make an economic profit.
D. encourages firms to enter an industry.
Answer: A
You might also like to view...
Refer to the demand and supply equations. What are the equilibrium price and quantity?
What will be an ideal response?
Refer to Figure 14.3. To maximize total wages paid to workers, the labor union will agree to wage rate:
A) W0. B) W1. C) W2. D) W3. E) none of the above
Which of the following would cause an increase in the market supply of mountain bikes?
A) a decrease in the demand for mountain bikes B) an increase in taxes levied on mountain bike manufacturers C) an increase in the cost of components used to assemble mountain bikes D) an increase in the number of firms making mountain bikes
Which of the following best satisfies the five prerequisites of money?
a. river-rounded stones b. bananas c. hardwood trees d. bricks e. silver