In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price

Question:

In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price P, marginal cost MC, and average total cost ATC?

a. P > MC and P > ATC.

b. P > MC and P = ATC.

c. P = MC and P > ATC.

d. P = MC and P = ATC.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Principles Of Microeconomics

ISBN: 9780357133484

9th Edition

Authors: N Gregory Mankiw

See More Books

Question Posted: Jan 27, 2024 11:00 PM

See More Questions

In parallelogram ABCD shown below, AB is 7 inches long. If the parallelograms perimeter is 46 inches, how many inches long is AD? F. 6 1/2 G. 16 H. 28 J. 39 K. 49 B 7 A C D
John has purchased goods from a hardware supplier and has been offered trade credit terms of 1.5/10, n/40. Calculate (a) the opportunity cost of trade credit in this case. Assuming that John can...
Multiple Choice Questions 1. A perfectly competitive firm a. Chooses its price to maximize profits. b. Sets its price to undercut other firms selling similar products. c. Takes its price as given by...
Given a sorted array of Comparable items, write functions floor () and ceiling () that return the index of the largest (or smallest) item not larger (or smaller) than an argument item in logarithmic...
Near the equator, the Earths magnetic field points almost horizontally to the north and has magnitude B = 0.50 X 10-4 T. What should be the magnetic and direction for the velocity of an electron of...
A professor is teaching a large class that has 247 students. He wants to select a sample of 15 students to do a study on the habits of his students. For each of the following sampling methods,...
In 2015, the city of San Francisco enacted an ordinance that required health warnings on advertisements for certain sugar-sweetened beverages (SSBs) that read: WARNING: Drinking beverages with added...
Here is a work breakdown structure for a wedding. Use the method described in the Snapshot from Practice: The Yellow Sticky Approach to create a network for this project. Work Breakdown Structure 1....
dentify the correctly revised sentence that adds interest and variety by beginning with an infinitive. Brooke congratulated me on securing investor financing for my startup company. Multiple choice...
I n the short-run equilibrium of a competitive market with identical firms, if new firms are getting ready to enter, what are the relationships among price P, marginal cost MC, and average total cost...
If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and average total cost, it will a. keep producing in the short run but exit...
If r = (x, y), r 1 = (x 1 , y 1 ), and r 2 = (x 2 , y 2 ), describe the set of all points (x, y) such that |r r 1 | + |r r 2 | = k, where k > |r 1 r 2 |.
A ticker tape machine recorded the motion of a dynamics cart. The dots were uniformly spaced on the tape. What does uniformspacing indicate?
32) Many roller coasters begin with a motor pulling the carts to the top of a large hill. A larger initial hill allows the roller coaster to travel for a longer period of time. why is this the case?...
Evaluate the following limit. Enter the exact answer. If the limit does not exist, enter DNE. lim(+) = 3-3) . 3 -
A toy train car of mass 5 0 kg collides with a stationary empty car of mass 1 5 kg while moving 5 m / s . At the collision the cars couple together. What is the final velocity of the moving pair?
A wheel is spinning with the period of 0 . 1 9 seconds. a point on the rim is moving with the speed of 7 . 4 m / s . Calculate the diameter of the wheel
On August 1, 2010, Colombo Co.s treasurer signed a note promising to pay $240,000 on December 31, 2010. The proceeds of the note were $232,000. Required: a. Calculate the discount rate used by the...
Suppose the S&P 500 futures price is 1000, = 30%, r = 5%, = 5%, T = 1, and n = 3. a. What are the prices of European calls and puts for K = $1000? Why do you find the prices to be equal? b. What...
Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficiency. In the case of efficiency, discuss the type of market failure...
Discuss each of the following statements from the standpoints of equality and efficiency. a. Everyone in society should be guaranteed the best healthcare possible. b. When workers are laid off, they...
In what ways is your standard of living different from that of your parents or grandparents when they were your age? Why have these changes occurred?
What is the role of "romance and theatre" in Starbucks outlet ? Discuss how the key tangible and intangible brand attributes be adapted to ensure that Indian consumers have a positive experience of...
Suppose you have been tasked with investigating attitudes about climate change. The survey includes lifestyle questions, attitude questions, demographics, and opinion questions specific to greenhouse...
Eden Dairy, a major Australian dairy company manufactures and sells standardised breakfast yoghurts to countries all over the world. To appeal to local needs, minor changes in attributes such as...

In the long-run equilibrium of a competitive market with identical firms, what are the relationships among price

Question:

Step by Step Answer:

Principles Of Microeconomics

Students also viewed these Business questions