Which is true of a purely competitive firm in the long-run equilibrium?
A. Average fixed cost equals price
B. Marginal cost equals marginal product
C. Price equals marginal cost
D. Average variable cost equals marginal cost
C. Price equals marginal cost
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When aggregate planned expenditure is less than GDP,
A) the economy definitely is at its equilibrium expenditure but even so, firms decrease production. B) firms increase production until the economy reaches equilibrium expenditure. C) the economy definitely is at its equilibrium expenditure and firms do not change production. D) firms decrease production until the economy reaches equilibrium expenditure. E) the economy might be at its equilibrium expenditure and if it is, firms do not change their production.
Shrimp is an increasingly popular part of the American diet. Louisiana shrimpers who represent the bulk of the U.S. industry were almost all put out of business by Hurricane Katrina. How did the hurricane affect the equilibrium price and quantity of
shrimp? What will be an ideal response?