A firm's long-run position under perfect competition is often said to be efficient because
A) P = AR > MC = AVC.
B) P = AR > MR = MC.
C) P = MR = AVC = AFC.
D) P = MR = MC = ATC.
D
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In 1975 the Swiss National Bank announced a policy of targeting ________
A) the level of income B) interest rates C) rational expectations D) monetary aggregates
The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.
Eli is headed to his job harvesting grapes at a local vineyard. He earns $8 every hour he works there. His friend calls him and asks him to go mountain biking for the next 2 hours instead. Eli cannot decide between the two activities. His indecision implies he values riding his mountain bike for two hours:
A. less than $16. B. more than $16. C. at no more than $8. D. at exactly $16.
The relationship between long-run and short-run average total costs is known as the:
A. economic relationship. B. envelope relationship. C. efficiency relationship. D. technical relationship.