In the long-run, both perfectly competitive and monopolistically competitive firms will produce at minimum average cost
a. True
b. False
A
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Refer to Common Property II. Suppose the common property becomes privately owned. If the owner behaves competitively, what entrance fee would he charge for the right to use the property?
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. PC.
b. PC - P1.
c. P2 - PC.
d. P2 - P1.
Higher interest rates
A. Raise the present value of future payments. B. Lower the future value of current dollars. C. Reflect a higher opportunity cost of money. D. Result in a higher risk premium.
Suppose the price of tomatoes dramatically increases. Which of the following could cause this change?
A. A news report stating that a pesticide used on tomatoes might cause cancer, shifting the demand to the right B. Hurricanes during the late summer damage the Florida crop, shifting supply left C. Advertising for ketchup increases demand for ketchup, shifting the demand curve to the left D. A reduction in tariffs of tomatoes from Central American, shifting supply right
When disposable income is 3,000, savings is
A. 1,000
B. 750
C. 500
D. 0