In long-run equilibrium, the perfectly competitive firm produces:
a. where P = MC = AC
b. at the lowest point on its long-run average cost curve.
c. where its long-run average cost curve is tangent to its horizontal demand curve.
d. at a level of output such that all of the above are true.
d
Economics
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Using the table above, for which of the following levels of employment does the marginal product of labor exceed the average product of labor at Decent Donuts?
A) four workers B) seven workers C) both of the above D) neither of the above
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When marginal cost pricing is used, the losses are usually paid for by ______.
a. taxpayers b. producers c. distributors d. suppliers
Economics