In a perfectly competitive market:
A) the long-run market price is equal to the average fixed cost of the industry.
B) the long-run market price is less than the minimum average cost of the industry.
C) the long-run market price is more than the minimum average cost of the industry because of free entry and exit of firms.
D) the long-run market price is equal to the minimum average cost of the industry because of free entry and exit of firms.
D
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A nation will import a good if its no-trade, domestic
A) price is equal to the world price. B) price is less than the world price. C) price is greater than the world price. D) quantity is less than the world quantity. E) quantity is greater than the world quantity.
In the economy of Pandemonia, 500 people have jobs, 500 people are not working but are searching for work, and 1500 people don't work and don't seek work. The unemployment rate is
A) 10 percent. B) 40 percent. C) 50 percent. D) 66 percent. E) none of the above.