In a perfectly competitive market, when the price is greater than the minimum average total cost for all firms:
A. positive economic profits are being earned.
B. firms will exit, causing the price to drop.
C. firms will enter, causing the price to increase.
D. None of these is true.
Answer: A
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A) a new entrant to the labor force B) a job leaver who is looking for a better job C) an individual fired by her employer D) a newly retired worker
A monopolist produces at the minimum point of the average total cost curve in the long run
a. True b. False Indicate whether the statement is true or false
Based on the graph showing the effects of a government budget surplus, when a surplus makes the loanable funds supply shift from S1 to S2, the real interest rate will ______.
a. remain at r1
b. remain at r2
c. rise from r2 to r1
d. drop from r1 to r2
Refer to Figure 8.1, which shows a family of average cost curves. The average total cost curve is represented by:
A. Curve 1. B. Curve 2. C. Curve 3. D. the vertical sum of curve 1 and curve 2.