Author Question: In the long run, a perfectly competitive firm can make an economic profit because its marginal cost ... (Read 150 times)

809779 · **on:** Jun 29, 2018

In the long run, a perfectly competitive firm can make an economic profit because its marginal cost equals its average total cost.

Indicate whether the statement is true or false

Question 2

What does the slope of the budget line equal?

What will be an ideal response?

anoriega3 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

FALSE

Answer to Question 2

The slope of the budget line equals an opportunity cost. It is the same as the opportunity cost of the good measured along the x-axis. It also equals a relative price. In particular, it is the same as the relative price of the good measured along the x-axis.