A perfectly competitive industry in long-run equilibrium is described as efficient because firms
a. produce at the low point on their average cost curve.
b. produce where marginal cost yields a profit.
c. earn no more than the cost of capital.
d. are not profitable.
a
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Economists define liquidity as
A) the difference between the return on the asset and the return on a long-term U.S. Treasury bond. B) the fraction the asset makes up of an investor's portfolio. C) the ease with which an asset can be exchanged for money. D) the difference between the total demand for an asset and the total supply of the asset.
If producing just one more tube of toothpaste makes Crest's average total cost fall, the marginal cost of that tube of toothpaste is
a. less than one b. greater than the average total cost of the previous tubes c. greater than the average variable cost of the previous tubes d. less than the average total cost of the previous tubes e. less than the marginal cost of the previous tube