In a competitive industry with identical firms, long-run equilibrium is characterized by:
A. MR = MC.
B. P < MC.
C. MR < P.
D. P > AC.
Answer: A
You might also like to view...
The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from S0 to S1
The quantity of buckets without the tax is ________ and the quantity with the tax is ________. A) 400; 600 B) 600; 400 C) 400; 400 D) 800; 500 E) 600; 500
The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400 The marginal benefit of upgrading from a 2.0GHz computer to a 2.5GHz computer is:
A. $100. B. $1,400. C. $1,000. D. $400.
Automatic stabilizers
A. are a form of nondiscretionary fiscal policy. B. include income taxes and cash assistance to the poor. C. include in-kind assistance. D. All of the choices are true of automatic stabilizers.
To increase society's total welfare (social efficiency), a production process that produces a negative externality should be:
A. taxed. B. provided by the government. C. ignored. D. subsidized.