Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
In the long run, the equilibrium price will be ________ per gallon, and each firm's profit-maximizing quantity will be ________ gallons per week.
A. $20; 400
B. $15; 300
C. $20; 4,000
D. $15; 6,000
Answer: B
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Suppose Stan transfers $1,000 from his savings account into his checking account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 remains the same. B) M1 decreases; M2 increases. C) Both M1 and M2 increase. D) Both M1 and M2 decrease. E) Both M1 and M2 remain the same.
Describe the behavior of the unemployment rate from the early 1990's to the present.
What will be an ideal response?
During the mid to late 1990s, the incentives for investment spending were provided by rising
a. aggregate demand. b. real interest rates. c. levels of corporate taxes. d. levels of capital gains taxes.
Protecting intellectual property rights:
A. never benefits society. B. is hotly debated as to whether it benefits or costs society overall. C. rarely affects society overall. D. always benefits society.