For a perfectly competitive firm at its long-run equilibrium
A) P = MR = MC = AC.
B) P = MR > MC.
C) accounting profit must be zero.
D) there are no opportunity costs to be concerned with.
Answer: A
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Which of the following statements describes economists' attitudes regarding the influence of social factors on the choices consumers make?
A) Economists believe social factors affect consumer choice in markets for public goods but not in markets for private goods. B) Liberal economists believe social factors are very important; conservative economists do not believe social factors have any influence on consumers. C) Economists traditionally believed they were unimportant, but many economists now believe social factors are important. D) Economists formerly believed they were very important but now they believe they are not important.
The long-run equilibrium of a monopolistic competitor lies on: a. the minimum point of the average total cost curve
b. the downward-sloping portion of the average total cost curve. c. the upward-sloping portion of the average total cost curve. d. the minimum point of the marginal cost curve.
If an economy wants to increase its current level of investment, it must
A. sacrifice future consumption. B. print more money. C. offer more stocks and bonds to financial investors. D. sacrifice current consumption.
Which of the following stresses the inability of the government to improve short-run market outcomes?
A. Monetary policy B. New classical economics C. Supply-side policy D. Fiscal policy