In the long run, a firm in a perfectly competitive industry will ...

[bcretired]

In the long run, a firm in a perfectly competitive industry will supply output only if its total revenue covers its
 
  A) implicit costs. B) fixed costs.
  C) explicit costs plus its implicit costs. D) explicit costs.

Question 2

An increase in the price level results in a(n) ________ in the quantity of real GDP demanded because ________.
 
  A) decrease; a higher price level increases consumption, investment, and net exports.
  B) increase; a higher price level increases consumption, investment, and net exports.
  C) decrease; a higher price level reduces consumption, investment, and net exports.
  D) increase; a higher price level reduces consumption, investment, and net exports.

[atrochim]

Answer to Question 1

C

Answer to Question 2

C