Author Question: If the actual price were below the equilibrium price in the market for bread, a: A) surplus would ... (Read 103 times)

CQXA · **on:** Jul 1, 2018

If the actual price were below the equilibrium price in the market for bread, a:

A) surplus would develop that cannot be eliminated over time.
B) shortage would develop, which market forces would eliminate over time.
C) surplus would develop, which market forces would eliminate over time.
D) shortage would develop, which market forces would tend to exacerbate.

Question 2

Which of the following is true of the output level produced by a firm in long-run equilibrium in a monopolistically competitive industry?

A) It produces at minimum average cost.
B) It does not produce at minimum average cost, and average cost is increasing.
C) It does not produce at minimum average cost, and average cost is decreasing.
D) Either B or C could be true.