Explain the relationship between price, short-run marginal cost, short-run average cost and long-run average cost in the final long-run competitive equilibrium condition. What are economic profits in this long-run equilibrium condition?

At the optimal consumption bundle, the marginal rate of substitution of leisure for consumption is equal to

A) the real wage and the budget line is tangent to an indifference curve. B) minus the real wage and the budget line is tangent to the indifference curve. C) the real wage and the budget line intersects the indifference curve. D) minus the real wage and the budget line intersects the indifference curve.

A real option can present management with the opportunity to

A) vary output. B) abandon a project. C) postpone a project. D) All of the above