If a production function is represented as q = LaKb, the long-run average cost curve will be horizontal as long as

A payment made by the government to private producers of roads and libraries would be an example of

A) a subsidy. B) a copyright. C) a voucher. D) public provision. E) a Coase payment.

The above figure shows the payoff to two gasoline stations, A and B, deciding to operate in an isolated town. If firm A chooses its strategy first, then

A) firm A will not enter. B) firm B's entry is blockaded. C) both firms will enter. D) firm A will enter and firm B will not.