In long-run equilibrium, the perfectly competitive firm sets its ...

[123654777]

In long-run equilibrium, the perfectly competitive firm sets its price equal to which of the following?
 a. Short-run average total cost.
  b. Short-run marginal cost.
  c. Long-run average cost.
  d. All of these.

Question 2

Suppose an economist found that total revenues increase for the bus system when fares were raised, the conclusion is that the price elasticity demand for subway services over the range of fare increase is inelastic.
 a. True
  b. False
  Indicate whether the statement is true or false

[HandsomeMarc]

Answer to Question 1

d

Answer to Question 2

True

[123654777]

Excellent

[yeungji]

Thanks for the timely response, appreciate it