In the long run, pure competition forces firms to produce at the minimum of average total cost and charge a price consistent with that cost.
Answer the following statement true (T) or false (F)
True
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At the profit-maximizing level of production of a monopolist, ________
A) marginal revenue equals marginal cost B) marginal revenue exceeds marginal cost C) marginal revenue is less than marginal cost D) both marginal revenue and marginal cost are negative
________ analysis by economists refers to the attempt to answer questions such as what are the effects of a tax on production and consumption decisions
A) Positive B) Negative C) Normative D) Investigative
If the opportunity cost is 2X = 1Y for country A and 1X = 3Y for country B, then a possible terms of trade is:
A) 1X = 1/3Y. B) 1X = 1/4Y. C) 1X = 1/5Y. D) 1/2X = 1Y.
An increase in the reserve supply
A. will result in inflation if the unemployment rate is high. B. causes interest rates to rise. C. shifts the aggregate demand curve inward. D. will probably cause inflation if the economy is at potential GDP.