The perfectly competitive widget industry is in long-run equilibrium. A profit-maximizing manufacturer receives total revenue of $55,000. He uses his labor, $15,000 worth of wire, and $15,000 worth of steel to make the widgets. The manufacturer
A. is earning an economic profit of $25,000.
B. must have an opportunity cost of labor of less than $25,000.
C. must have an opportunity cost of labor of exactly $25,000.
D. must have an opportunity cost of labor of more than $25,000.
Answer: C
Economics
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A. their cross price elasticity of demand will be 0. B. their cross price elasticity of demand will be infinity. C. their cross price elasticity of demand will be negative. D. their cross price elasticity of demand will be positive.
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A ________ industry has a relatively small number of firms that dominate a market.
A. contestable B. Cournot C. concentrated D. monopolistically competitive
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