In long-run equilibrium under perfect competition,
a. the firm and the industry will have the same cost curves.
b. only a very few firms will be earning economic profits.
c. the demand curves facing individual firms will fall to the level of minimum AC.
d. individual firms will tend to increase their outputs.
c
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The regulatory agency that sets reserve requirements for all banks is
A) the Federal Reserve System. B) the Federal Deposit Insurance Corporation. C) the Office of Thrift Supervision. D) the Securities and Exchange Commission.
The substitution effect that occurs when interest rates change involves a change in consumption that develops from ________
A) a change in the general level of prices B) a period of increasing productivity C) a change in the level of income D) a change in the relative prices of consumption in the two periods