In the long-run equilibrium, perfectly competitive firms produce where
A) marginal cost is minimized.
B) average total cost is minimized.
C) average revenue is zero.
D) All of the above are correct.
B
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Most favored nation status requires:
a. a WTO member that reduces a tariff on imports from one WTO trading partner to apply the lower tariff to imports from all other WTO members. b. a WTO member that reduces a tariff on imports from one WTO trading partner to apply the lower tariff to imports from all other countries. c. a WTO member that increases a tariff on imports from one WTO trading partner to raise the tariff on imports from all other WTO members. d. a WTO member that increases a tariff on imports from one WTO trading partner to raise the tariff on imports from all other countries.
Explain some important situations where direct controls have a clear advantage over taxes