Tommy's Tires operates in a perfectly competitive market. If tires sell for $50 each and ATC = $40 per tire at the profit-maximizing output level, then in the long run
a. more firms will enter the market
b. some firms will exit from the market
c. the equilibrium price per tire will rise
d. average total costs must fall
e. marginal revenue will rise
A
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a. True b. False Indicate whether the statement is true or false
Which of the following is counted in GDP?
A) the trading of 100 shares of Microsoft stock B) the services of a real estate broker C) government transfer payments D) the sale of a used car E) none of the above
A firm will increase its spending on advertising until
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