Refer to Figure 10.1. Suppose that the government decides to limit monopoly power with price regulation. If the government sets the price at the competitive level, it will set the price at ________

When we solve the firm's dual production problem (i.e., maximize output subject to a cost constraint) by the method of Lagrange multipliers, the optimal value of the Lagrange multiplier equals the:

A) marginal product per unit cost of each variable input. B) marginal product of capital. C) marginal product of labor. D) marginal cost of production.

Which of the following statements is not true in a perfectly competitive industry in long-run equilibrium?

A. A profit-maximizing firm may produce any output level at which P < LRAC. B. Every firm produces at an output level at which MC = LRAC. C. There is no entry or exit from the industry. D. No firm earns an economic profit.