What price will a perfectly competitive firm typically charge in the long run?
a. A price that equals the minimum of its average cost of production
b. A price that is lower than its average cost of production
c. A price that ensures an accounting profit and an economic profit
d. A price that is lower than the price charged by competitors
a. A price that equals the minimum of its average cost of production
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A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis
A) increases by a decreasing amount. B) decreases. C) does not change by much. D) increases by an increasing amount. E) increases by a constant amount.
The above figure shows the market for pizza. The market is in equilibrium when new pizza firms enter the market. What point represents the most likely new price and quantity?
A) A B) B C) C D) D E) E