In the long run, each perfectly competitive firm produces at the lowest point on
a. its short-run average total cost curve
b. its long-run average total cost curve
c. its marginal cost curve
d. both its short-run and long-run average total cost curves
e. both its short-run average cost curve and its marginal cost curve
D
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If a firm is a price taker in both the labor market and the output market, it will
A) earn zero economic profit in the short run. B) hire labor until the marginal product of labor equals zero. C) hire labor until the marginal revenue product equals the output price. D) hire labor until the marginal revenue product equals the wage rate.
Exchange rates in what is termed the "medium run"
a. will be altered by an economic upswing because consumers buy more goods including imports when disposable income goes up. b. will be unaffected by economic changes in personal income or consumption spending. c. will appreciate for a country having an economic boom when others are not. d. All of the above are correct.