The market for a competitive price-taker market clears at a price of $3, and the minimum average cost for all firms is $2.50 . In the long run, we would expect an increase in
a. each firm's output.
b. the number of firms.
c. each firm's profit.
d. each firm's average cost.
B
Economics
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An efficient allocation of goods in an exchange economy means that
A) goods were produced by the most efficient technology available. B) no one can be made better off without making somebody else worse off. C) those made worse off are not hurt as badly as the benefits resulting from those made better off. That is, there is a net positive gain. D) in a particular production process one gets the maximum output for a given input.
Economics
A firm currently has 5 workers each paid $15 per hour. If it decides to hire a 6th worker, the hourly wage increases to $18 for all workers. What is the marginal cost of hiring the 6th worker?
a. $3 b. $18 c. $15 d. $33
Economics