For a perfectly competitive firm, the long-run supply curve is the long-run average cost curve
a. True
b. False
Indicate whether the statement is true or false
True
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What is the difference between sunk costs and marginal costs?
Beginning from a long run equilibrium in a competitive industry, if there is a substantial, permanent increase in demand for industry output:
a. firms will enter the industry, the quantity produced will rise, and prices will end up lower than their initial long run equilibrium level. b. firms will enter the industry, the quantity produced will rise, and prices will end up higher than their initial long run equilibrium level. c. firms will enter the industry, the quantity produced will rise, and prices will end up at the same level as their initial long run equilibrium level. d. firms will enter the industry, the quantity produced will rise, and but without more information, we cannot know if prices will end up higher than their initial long run equilibrium level.
Although specialization of labor increases efficiency of production, it can lead to another major problem:
a. the need to exchange goods among producers. b. the need to remain fully employed. c. the depletion of natural resources. d. assuring that exchange leads to mutual gains. e. All of the above are correct.
Which statement is false?
A. During the 19th century the main cash crops grown in the South were cotton, rice, sugar, and tobacco. B. The only real economic conflict between the North and the South before the Civil War was over slavery. C. It took most parts of the South about a century to recover economically from the effects of the Civil War. D. Southern agriculture developed very differently from agriculture in other regions of the nation.