A firm's short-run average cost is defined as
a. the ratio of total output to short-run total cost.
b. the ratio of short-run total cost to total output.
c. the additional cost of producing one more unit of output while some input is fixed.
d. the additional cost of producing one more unit of output while all inputs are fixed.
b
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Economies can be organizations such as
A) households. B) individual states of the United States. C) entire countries. D) households, states, and countries.
The Nash equilibrium in a Bertrand game in which firms produce perfect substitutes and have equal marginal costs is:
a. efficient because all mutually beneficial transactions will occur. b. efficient because of the free entry assumption. c. inefficient because some mutually beneficial transactions will be foregone. d. inefficient because of the uncertainties inherent in the game.