In long-run equilibrium, a perfectly competitive firm produces the output level that minimizes average total cost

Which of the following does not represent a "labor market rigidity" to which critics refer when discussing unemployment in Europe?

A) generous unemployment insurance B) restrictive monetary and fiscal policies C) a high degree of employment protection D) relatively high minimum wages E) none of the above

Fixed costs are best defined as

a. costs that do not vary with output. b. costs that are at a minimum when output approaches the firm's capacity. c. the amount that one more unit of output adds to total costs. d. costs that decline as output increases.