Assume that a rise in petroleum prices increases the cost of milk ...

[mia]

Assume that a rise in petroleum prices increases the cost of milk transportation from the dairies to the market. We can expect the long-run supply curve in this industry to shift downward.
  Indicate whether the statement is true or false

Question 2

In the short-run, a competitive firm is said to break-even if at equilibrium the:
 a. price is equal to marginal revenue.
  b. price is equal to average revenue.
  c. price is equal to average variable cost.
  d. price is equal to the average total cost.
  e. price is equal to marginal cost.

[jasonq]

Answer to Question 1

F

Answer to Question 2

d

[mia]

TYSM

[shailee]

Excellent