A decrease in demand will result in a(n)
a. increase in equilibrium price and quantity
b. decrease in equilibrium price and quantity
c. decrease in equilibrium price and an increase in equilibrium quantity
d. increase in equilibrium price and a decrease in equilibrium quantity
e. change in equilibrium price and quantity only if supply changes too
B
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In the long-run equilibrium in a perfectly competitive market, the firms produce at the ________ possible average total cost and the price equals the ________ possible average total cost
A) highest; highest B) lowest; lowest C) highest; lowest D) lowest; highest
The assumption that individuals act rationally implies that
a. people think only of themselves and disregard the well-being of others b. people undertake all those activities that yield benefits to themselves c. people only consider the costs of an activity to decide whether it is worthwhile d. the greater the cost of a charitable deed to a benefactor, the more likely he or she is to perform that deed e. people implicitly calculate the costs and benefits of an activity to decide if it is worthwhile