For a perfectly competitive firm at its long-run competitive equilibrium point
A) P = AR = MR = LATC = ATC = MC.
B) P = AR = MR = LATC > ATC = MC.
C) P = AR = MR = MC = LATC = AVC.
D) P > MR > AR > MC > LATC > ATC.
Answer: A
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Which of the following statements is true?
A) Cost-benefit analysis does not yield the same result as optimization analysis. B) A rational economic agent is not likely to optimize. C) Cost-benefit analysis can also be used for normative economic analysis. D) The net benefit of an option that costs $50 and provides a benefit of $100 is equal to $150.
The table above represents five points on the production possibility frontier for the small country of Baca, which produces only rugs (measured in thousands) and wheat (measured in thousands of bushels): If the economy is currently at point A,
what is the opportunity cost of producing an additional 10,000 bushels of wheat? If the economy is currently at point B, what is the opportunity cost of producing an additional 10,000 bushels of wheat? What if the economy is currently at point D?