Author Question: In the long-run equilibrium, a firm's price definitely equals its average total cost in A) both ... (Read 82 times)

Hungry! · **on:** Jun 29, 2018

In the long-run equilibrium, a firm's price definitely equals its average total cost in

A) both monopoly and monopolistic competition.
B) neither monopoly nor monopolistic competition.
C) monopoly but not monopolistic competition.
D) monopolistic competition but not monopoly.

Question 2

The minimum wage in 2008 was 6.55 cents until July 2008 when it was raised to 7.25. If the minimum wage in June was below the equilibrium wage and the increased wage in July was above the equilibrium wage, then

A) firms' producer surplus was greater in June than in July.
B) unemployment was unaffected by the increase.
C) the deadweight loss was greater in June than in July.
D) employment of low-skilled workers increased in July.