A perfectly competitive firm in long-run equilibrium produces output at the lowest possible average total cost
Indicate whether the statement is true or false
TRUE
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Two rationality assumptions economists make about tastes are first, that some individuals are not able to compare any two bundles of goods to one another, and second, that there is an internal consistency to tastes that makes it possible to choose a "best" bundle.
Answer the following statement true (T) or false (F)
What best describes the impact of the cotton gin?
a. A decrease in the price and an increase in the quantity of cotton. b. An increase in the price and a decrease in the quantity of cotton. c. Decreases in both the price and quantity of cotton. d. Increases in both the price and quantity of cotton.
If oranges and grapefruit are close substitutes, an increase in the price of oranges will shift the demand curve of
a. both products to the right. b. both products to the left. c. grapefruit to the right. d. oranges to the left.
The problem of scarce resources _____
a. can be solved in a market economy, but not in a command economy. b. can be solved if all resources are jointly owned by the public and private sectors. c. implies that the resources are not freely available. d. arises because all natural resources are owned by the government in every country. e. can be solved by lowering taxes in an economy.