What is the "most efficient capacity" for the perfectly competitive firm?
A) The plant size at which LRAC is at its minimum.
B) The plant size at which any of the SRATC curves are tangent to the LRAC curve.
C) The plant size at which MR = MC.
D) The plant size for which Price = AR.
A
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India's government runs a government budget surplus. If there is no Ricardo-Barro effect, the surplus means that the
A) private supply of loanable funds curve lies to the left of the supply of loanable funds curve. B) private demand for loanable funds curve lies to the left of the demand for loanable funds curve. C) private supply of loanable funds curve is the same as the supply of loanable funds curve. D) private supply of loanable funds curve lies to the right of the supply of loanable funds curve. E) None of the above answers is correct.
The condition in an economy that makes a "rationing device" a necessity is:
A) the economy is organized around free markets. B) the economy is centrally planned by the government. C) scarcity exists. D) there are fewer types of goods than there are people in the economy.