Which of the following is an example of transitory income?
a. John's $30,000 per year salary as a junior high school science teacher
b. Linda's $40,000 per month income from bond market investments
c. Paul's $15 per week earnings from selling aluminum cans he collects from along the side of the road
d. Ringo's $100 prize for winning a radio talk-show contest
e. George's $6,000 per year earnings in his second job, moonlighting as a clerk in a video rental store
D
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A firm is operating in its range of economies of scale and is on both its LRAC curve and its short-run ATC curve. At that level of output, the slope of its LRAC curve is
A) zero and the slope of its ATC curve is zero. B) zero and the slope of its ATC curve is negative. C) negative and the slope of its ATC curve is zero. D) negative and the slope of its ATC curve is negative.
"In the long run, a perfectly competitive firm's average total cost is always below the market clearing price." Agree or disagree? Why?
What will be an ideal response?