________ refers to the reduction in economic surplus resulting from not being in competitive equilibrium
A) Producer atrophy B) Deadweight loss C) Economic shortage D) Marginal cost
B
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When economies of scale are present,
A. costs per unit decline as output expands. B. the government feels responsible for breaking up the firm. C. firms always make handsome profits. D. costs fall as the size of the product is increased.
When economic profits are zero for a firm in a perfectly competitive market, it means that:
A. average total costs are zero. B. price is equal to minimum average total cost. C. average variable costs are minimized. D. MR is equal to AVC.
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.
A supply curve:
A. has a negative slope. B. is based on the assumption of a stable demand curve. C. illustrates the negative relationship between price and quantity supplied. D. illustrates the positive relationship between price and quantity supplied.