In the long run, a firm in a perfectly competitive market operates
a. at its efficient scale, and a monopolistically competitive firm operates at its efficient scale.
b. at its efficient scale, and a monopolistically competitive firm operates with excess capacity.
c. with excess capacity, and a monopolistically competitive firm operates with excess capacity.
d. with excess capacity, and a monopolistically competitive firm operates at its efficient scale.
b
Economics
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If the marginal rate of technical substitution for a cost minimizing firm is 10, and the wage rate for labor is $5, what is the rental rate for capital?
A) $0.5 B) $1 C) $2 D) $10
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Capital gains tax cuts inevitably benefit
a. low-income workers. b. retired persons. c. workers in large cities. d. high-income stock owners.
Economics