In the transition from the short run to the long run, the number of firms in a competitive industry is
a. fixed.
b. increasing at a constant rate.
c. decreasing.
d. able to adjust to market conditions.
d
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Refer to Figure 21.1. If Area I = 1,700 and Area J = 3,300, what is the Gini coefficient?
A) 0.17 B) 0.34 C) 0.52 D) 2.94
Total cost is equal to the
A) sum of the total fixed cost and the total variable cost. B) sum of the average fixed cost and the average variable cost. C) difference between the average variable cost and the average fixed cost. D) product of the marginal cost multiplied by the average total cost.
If firms are producing at a profit-maximizing level of output where the price exceeds the average total cost:
A. accounting profits must be negative. B. economic profits must be zero. C. other firms will enter the market. D. firms will exit the market.
The total fixed cost curve:
a. varies with the quantity of inputs used. b. decreases with output. c. increases with output. d. remains constant regardless of output.