Draw a graph on the diagram below showing the long-run equilibrium position of a competitive firm. Write a formula to express the equalities in the graph
What will be an ideal response?
The formula is P = minimum ATC = MC, or price is equal to the minimum of average total cost and also equal to marginal cost.
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In the year that a bakery buys a new $100,000 oven by borrowing at a real interest rate of 5 percent, the oven adds $22,000 to bread sales, depreciates by $8000, and requires $3000 in natural gas and maintenance
Since the MPK is ________ the user cost of capital, the bakery should ________. A) above, shut down the oven B) above, consider buying more ovens C) below, shut down the oven D) below, consider buying more ovens
The following interactions between binary and continuous variables are possible, with the exception of
A) Yi = ?0 + ?1Xi + ?2Di + ?3(Xi × Di) + ui. B) Yi = ?0 + ?1Xi + ?2(Xi × Di) + ui. C) Yi = (?0 + Di) + ?1Xi + ui. D) Yi = ?0 + ?1Xi + ?2Di + ui.