Which of the following is true for a perfectly competitive firm in the long run?
a. MR = MC = ATC
b. MR = MC = AFC
c. MC = ATC = AFC
d. MR = MC > ATC
e. MR = MC > AVC
A
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The capture theory of regulation is defined as
A) the use of regulations to assure the efficient use of resources. B) the constant reapplication of regulation on the cable TV industry. C) the use of regulation to assist producers to maximize profits. D) the removal of regulations on business activities. E) regulation that focuses on consumers' interests and ignores producers' interests.
From the 1950s to the 2010s, transfer payments' share of GDP
A) steadily increased. B) steadily decreased. C) remained fairly steady. D) increased during Democratic administrations and decreased during Republican administrations.
Refer to the graph shown. If the monopoly firm maximizes profit, it will produce:
A. 25 units of output and producer surplus will be $15.625. B. 30 units of output and producer surplus will be $60. C. 15 units of output and producer surplus will be $16.875. D. 15 units of output and producer surplus will be $28.125.
A purchase of government debt as part of open market operations would be an example of
A. contractionary monetary policy. B. contractionary fiscal policy. C. expansionary fiscal policy. D. expansionary monetary policy.