This topic contains a solution. Click here to go to the answer

Author Question: Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of ... (Read 92 times)

karen

  • Hero Member
  • *****
  • Posts: 537
Firms in long-run equilibrium in a perfectly competitive industry will produce at the low points of their average total cost curves because
 a. free entry implies that long-run profits will be zero no matter how much each firm produces.
  b. firms seek maximum profits and to do so they must choose to produce where average costs are minimized.
  c. firms maximize profits and free entry implies that maximum profits will be zero.
  d. firms in the industry desire to operate efficiently.

Question 2

Positive economic profits exist for a firm in the long run if price is above
 a. long-run average cost.
  b. long-run marginal cost.
  c. long-run total cost.
  d. long-run variable cost.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ambernicolefink

  • Sr. Member
  • ****
  • Posts: 359
Answer to Question 1

c

Answer to Question 2

a




karen

  • Member
  • Posts: 537
Reply 2 on: Jul 1, 2018
:D TYSM


diana chang

  • Member
  • Posts: 288
Reply 3 on: Yesterday
Gracias!

 

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

It is important to read food labels and choose foods with low cholesterol and saturated trans fat. You should limit saturated fat to no higher than 6% of daily calories.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

For a complete list of videos, visit our video library