Assume that a firm has TC = 100 + q2.If price is $50, which statement is true?
A) The firm produces 50 units, and makes an economic profit; this outcome is not a long-run equilibrium
B) The firm produces 25 units, and makes an economic profit; this outcome is not a long-run equilibrium.
C) The firm produces 25 units, and makes zero economic profit; this outcome is not a long-run equilibrium.
D) The firm produces 25 units, and make zero economic profit; the market is in its long-run equilibrium.
E) None of the above.
Correct Answer:
Verified
Q1: Which statement is true?
A)In an increasing-cost industry,
Q2: Consider a competitive firm with a TC
Q3: The short-run supply curve for a firm
Q4: Consider a competitive firm with a TC
Q6: Assume that a firm has TC =
Q7: A competitive firm has a TC =
Q8: Which statement is true?
A)The long-run supply curve
Q9: Which statement is true?
A)Zero economic profits in
Q10: In the long run in a constant-cost
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