Which of the following is true when long-run equilibrium conditions are present in price-taker and competitive price-searcher markets?
a. MR = ATC in both price-taker and competitive price-searcher markets.
b. P = ATC in price-taker markets; P = MC in competitive price-searcher markets.
c. P = MC in both price-taker and competitive price-searcher markets.
d. P = ATC in both price-taker and competitive price-searcher markets.
D
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Total producer surplus is the area below the equilibrium price and above the supply curve
a. True b. False Indicate whether the statement is true or false
If there are strong economies of scale and scope, then society
a. will not be able to prevent overt collusion. b. will benefit from establishing a cartel. c. cannot benefit from regulation of a natural monopoly. d. will not be able to preserve free competition.
Within the aggregate demand/aggregate supply framework, what does the quantity produced and purchased in the goods and services market represent?
What will be an ideal response?
For most goods, purchases tend to rise with increases in buyers' incomes and to fall with decreases in buyers' incomes. Such goods are known as:
A) inferior goods. B) direct goods. C) normal goods. D) luxury goods.