Consider a perfectly competitive firm whose minimum average total cost is $100 . This firm is representative of all the firms in the market. If the market price is $80, then in the long run

a. new, more-efficient firms will be attracted into the industry
b. market supply will fall
c. the firm's average revenue will fall
d. all the firms currently operating will increase output
e. total market output will rise


B

Economics

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All else being equal, if the rate of growth in productivity in Spain is greater than the rate of growth in productivity in the United States, the euro

A) will decrease in value relative the U.S. dollar. B) will nominally depreciate against the dollar, but its real value relative to the dollar will remain unchanged. C) will increase in value relative to the U.S. dollar. D) will nominally appreciate against the dollar, but its real value relative to the dollar will remain unchanged.

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What is the shape of the total revenue curve derived from a linear downward sloping demand curve?

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Economics

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Economics