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For all values above minimum average variable cost acompetitive firms:A)supply curve is coincident with its marginal cost curveB)supply curve is coincident with its average total cost […]

Suppose a decrease in product demand occurs in a decreasing-costindustry. Compared to the original equilibrium the new long-runcompetitive equilibrium will entail:A)a higher price and a higher […]

Competitive firms maximize:A)total profits by producing where price exceeds average total costby the greatest amountB)per unit profits by producing where marginal revenue equalsmarginal costC)total profits by […]

In the long run competitive markets achieve:A)allocative efficiency because P = min ATC but not productiveefficiency because P > min AVCB)allocative efficiency because P = MC […]

To find the amount by which the production of an additionalworker increases a purely competitive firms total revenue:A)subtract the wage from marginal productB)divide marginal product by […]

A competitive firm is currently producing 2000 units per monthat a total cost of $12000. Its fixed costs are $1000 and itsmarginal cost is $5. If […]

ACCT 505Multiple Choice (Chapter 12Segment Reporting Profitability Analysis andDecentralization)

According to the marginal productivity theory of incomedistribution each resource owner receives income:A)equal to the value of her contribution to total outputB)in proportion to her needC)in […]

Compared to an otherwise identical firm selling its outputcompetitively a firm with monopoly power:A)must lower its price to sell additional output making labordemand more elasticB)must lower […]