Distinct from any other market structure, the firm in long-run perfect competition ends up producing where
a. P = MR = MC = ATC, and AFC = 0
b. P > MR = MC = ATC, and AFC = 0
c. P < MR = MC < ATC, where ATC = (AFC + AVC + MC)
d. P = MR = MC = ATC, where ATC = (AFC + AVC)
e. P > MR and ATC > MC, where MC = (AFC + AVC)
D
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If the price elasticity of demand for good A is -1, then a 1% increase in
A) consumer income will result in a 1% decrease in the demand for good A. B) consumer income will result in a 1% increase in the demand for good A. C) the market price of good A will result in a 1% increase in the quantity demanded of good A. D) the market price of good A will result in a 1% decrease in the quantity demanded of good A.
Reducing a tariff on a particular good does which of the following? a. It decreases the price of the domestic good to domestic consumers
b. It increases the price of the good to domestic consumers. c. It redistributes income away from domestic producers toward domestic consumers. d. both (a) and (c)