The diagram portrays:
A. a competitive firm that should shut down in the short run.
B. the equilibrium position of a competitive firm in the long run.
C. a competitive firm that is realizing an economic profit.
D. the loss-minimizing position of a competitive firm in the short run.
B. the equilibrium position of a competitive firm in the long run.
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A gas station in the mountains of Oregon has a monopoly over the retail gas market within a 50-mile radius. The station decides not to price discriminate. As a result, all consumers will pay
A) the highest price each consumer is willing to pay. B) the lowest price possible. C) a single price. D) multiple prices. E) a price that depends on their willingness to pay.
The marginal rate of technical substitution (MRTS) along an isoquant:
A) is equal to the price ratio at all points along an isoquant. B) is equal to the ratio of the marginal utilities of the two goods. C) is equal to the ratio of the marginal products of the two inputs. D) remains constant as we alter the combinations of the two inputs.