In a competitive industry in the long-run, it is likely that
A. all firms giving their best effort will have the same LAC regardless of location or the unique skills of some workers.
B. only one large efficient firm can survive.
C. firms with the advantage of location or an especially skilled work crew will be the lone survivors in equilibrium.
D. the firms with the poorest location will be the lone survivors in equilibrium because their location cost will be lowest.
Answer: A
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Which factors determine the firm's elasticity of demand?
A) Elasticity of market demand and number of firms B) Number of firms and the nature of interaction among firms C) Elasticity of market demand, number of firms, and the nature of interaction among firms D) none of the above
When marginal revenue is positive, total revenue must rise as output increases
a. True b. False
The successful introduction and adoption of a new product or process is called
a. invention. b. innovation. c. economies of scale. d. economic growth.
The difference between a firm's total revenues and total costs when all explicit and implicit costs are included is the firm's
a. economic profit. b. accounting profit. c. opportunity cost of capital. d. long-run average total cost.