Which of the following statements is true in the context of the long run?
a. All the factors of production are fixed.
b. No new firms enter the market.
c. The producer can vary all the factors of production.
d. The firms earn positive economic profit.
e. Large firms tend to acquire market power.
c
Economics
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Larry spends all his $800 monthly income on pizza and milk. The price of pizza is $4 a slice, and the price of milk is $2 per quart. The relative price of milk is
A) 2 slices of pizza per quart. B) 0.5 slices of pizza per quart. C) $2 per quart. D) 0.5 quarts per slice of pizza.
Economics
Refer to Figure 4-4. What is the value of producer surplus at the equilibrium price of $15?
A) $80 B) $160 C) $240 D) $400
Economics