Bethany decides to get some build a chicken coop, get some chickens, and start selling fresh eggs in her neighborhood. This example describes which of the following characteristics of perfect competition?

The long-run average cost curve is U-shaped because of which of the following?

A) decreasing marginal returns as more labor is hired B) constant fixed costs as output is increased C) economies and diseconomies of scale D) increasing marginal returns as more labor is hired E) decreasing average fixed costs as output is increased

A company which charges a lower price than may be indicated by economic analysis to gain a foothold in the market is practicing

A) price skimming. B) psychological pricing. C) penetration pricing. D) prestige pricing.