In long-run equilibrium for a perfectly competitive industry, price equals
A. long-run average cost.
B. short-run average cost.
C. short-run marginal cost.
D. All of the above are correct.
Answer: D
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The social benefit of a given level of a public good is the vertical sum of all private benefits for that level
Indicate whether the statement is true or false
Suppose the production function for T-shirts can be represented as q = L0.25 K0.75. Show that the isoquants for this function are convex
What will be an ideal response?
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall. b. Reserves account would not change and monetary base would not change. c. Reserves account would fall and monetary base would not change. d. Reserves account would fall and monetary base would fall. e. Reserves account would fall and monetary base would rise.
If the economy is on the production possibilities frontier (PPF), the economy is
A) productive inefficient. B) operating with no unemployed resources. C) productive efficient. D) b and c E) none of the above