Please answer these questions correctly, I need to know this material thoroughly
ID: 1255019 • Letter: P
Question
Please answer these questions correctly, I need to know this material thoroughly to learn these concepts. I will be tested later on this material. Thank you so much! I will rate u as life saver.
A. MC would increase by $10 and AC would not change
B. AC would increase by $10 and MC would not change
C. MC and AC would both decrease by $10
D. MC and AC would both increase by $10
A. There is a known and limited number of potential suppliers that can produce a good in the
long run
B. There is an unlimited number of firms that can produce a good in the long run
C. The long run market supply curve is horizontal at the market price
D. B and C
A. The equilibrium price must equal the minimum AC
B. Firms must earn zero profits
C. Active firms must produce at their efficient scale of production
D. All of the above
A. The more elastic is demand and the less elastic is supply
B. The less elastic is demand and the less elastic is supply
C. The more elastic is demand and the more elastic is supply
D. The less elastic is demand and the more elastic is supply
A. The greater the difference between marginal revenue and price
B. The closer is marginal revenue to the price
C. The more a firm must reduce its price to increase its sales
D. A and C
Explanation / Answer
D B C C D