In a long-run equilibrium, a perfectly competitive firm's average total cost is
A. zero.
B. higher than the market price.
C. equal to average fixed cost.
D. minimized.
Answer: D
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Which of the following would be studied by macroeconomists?
A. Inflation in developing countries. B. The effect of government subsidies on sugar prices. C. The impact of the minimum wage on families below the poverty level. D. The effect of rent controls on housing prices in New York City.
Most theories of comparative advantage explain trade patterns due to international differences in
A) demand conditions. B) supply conditions. C) demand and supply conditions. D) tariffs.
There is statistical evidence to suggest that under English rule, colonists experienced
(a) financial chaos. (b) economic harm in terms of commerce, trade and investment. (c) growth and prosperity. (d) all of the above.
Refer to the above table. If the price of the product is $1.50, and the marginal factor cost of an additional unit of an input is $135, how many units of labor should be hired?
A) 11 B) 12 C) 13 D) 14