In long-run equilibrium, output is expanded to the minimum long-run average total cost by:
A. perfectly competitive firms but not by monopolistically competitive firms.
B. monopolistically competitive firms but not by perfectly competitive firms.
C. both monopolistically competitive firms and perfectly competitive firms.
D. neither perfectly competitive firms nor monopolistically competitive firms.
Answer: A
You might also like to view...
Refer to Scenario 7.3. When Q = 200, what is the marginal cost?
A) 0 B) 5 C) 10 D) 15 E) 25
Debt service
A. Is a discretionary component of the federal budget. B. Is a redistribution, so it does not entail opportunity costs. C. Does not cost the government because it can issue new debt. D. Refers to the annual interest payments on the debt.
What is featherbedding and why do unions engage in the practice?
What will be an ideal response?
The National Hockey League locked out the hockey players in an effort to negotiate a salary cap with the players' union. A cap would limit the payroll of each team. League officials acknowledged that the teams have brought the problem on themselves by overspending and overpaying some players in an effort to compete for the best players. Why would the teams have caused this problem for themselves?
A. They tried to create a contestable market and now suffer because there are no barriers to entry. B. They were caught in the logic of the prisoner's dilemma in which each player maximizing his own self-interest leads to an outcome that is worse off for everyone. C. They used explicit collusion instead of implicit collusion. D. They tried to create a cartel and suffered the consequences of too much collusion.