If the long-run average cost curve for the industry is flat what implication does this have for the relationship between the average cost curves for small and large firms?
What will be an ideal response?
If the LRAC curve is flat, small firms and large firms have identical long-run average costs.
Economics
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The price elasticity of demand
a. is of no use to producers b. tells producers what will happen to total profit if they change product price c. tells producers what will happen to quantity supplied if they change product price d. tells producers what will happen to total revenue if they change product price e. tells producers what will happen to price in the following time period
Economics
The contestable market theory best applies to
A. pure monopoly. B. oligopoly. C. monopolistic competition. D. perfect competition.
Economics