In a long-run equilibrium, a perfectly competitive firm's average total cost is
A) minimized.
B) higher than the market price.
C) zero.
D) equal to average fixed cost.
Answer: A
Economics
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In a market where negative externalities are associated with consumption and production, the equilibrium will not be efficient because:
A. Too few resources will be allocated towards producing the good B. Firms will shut down until costs are reduced C. Costs of production will, on average, be too high D. Too many resources will be allocated towards producing the good
Economics
What are the characteristics of monopolistic competition?
What will be an ideal response?
Economics