In the long-run equilibrium for a perfectly competitive firm, price equals which of the following? ...

In the long-run equilibrium for a perfectly competitive firm, price equals which of the following?
 a. price.
  b. minimum short-run average total cost.
  c. short-run marginal cost.
  d. All of these.

QUESTION 2

Goods with few available substitutes tend to have inelastic demand curves.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 3

In long-run equilibrium for a perfectly competitive firm, price equals which of the following?
 a. Economies of scale.
  b. Minimum short-run average total cost.
  c. The sum of each short-run marginal cost curve.
  d. All of these.

QUESTION 4

The fewer the substitutes for a good the greater will be the value of the price elasticity of demand coefficient.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

Which of the following statements is true?
 a. To maximize profits, a firm must maximize total revenue.
  b. In long-run equilibrium, a competitive firm produces at the point of minimum average total cost.
  c. In the short-run, a perfectly competitive firm produces where total cost is minimum.
  d. In the short-run, a perfectly competitive firm will close down whenever price is less than average total cost.

QUESTION 6

Other factors held constant, if there are few close substitutes for a good, demand is more elastic for it.
 a. True
  b. False
  Indicate whether the statement is true or false