Which would indicate that a firm is operating under conditions of pure competition and is being productively efficient?
A. It is making economic profits in the long run
B. Marginal cost equals average variable cost
C. It produces at the minimum average total cost
D. Its marginal revenue is less than average revenue
C. It produces at the minimum average total cost
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The winners from a Japanese tariff on imported cars are I. Japanese car producers. II. Japanese car consumers. III. the Japanese government
A) only I and III B) only I C) only II D) I, II, and III
Patents and copyrights create incentives for individuals to create information that might not be produced otherwise
Indicate whether the statement is true or false
Which of the following conditions must hold in the equilibrium of a competitive market where the government puts a specific tax on consumers?
A) The quantity sold and the price paid by the buyer must lie on the demand curve. B) The quantity sold and the seller's price must lie on the supply curve. C) The quantity demanded must equal the quantity supplied. D) the difference between the price the buyer pays and the price the seller receives must equal the specific tax. E) all of the above
Refer to the above figure. Which panel represents the long-run situation for a monopolistically competitive firm?
A. Panel A B. Panel B C. Panel C D. Panel D