A Teenaged Babysitter Is Similar to a Firm in a Perfectly
A teenaged babysitter is similar to a firm in a perfectly competitive industry in that,for both,
A) fixed costs are lower than variable costs.
B) there are many other suppliers of similar goods or services.
C) the implicit costs of production exceed the explicit costs of production.
D) average costs of production do not change when their industry expands.
If a firm in a perfectly competitive industry introduces a lower-cost way of producing an existing product,the firm will be able to earn economic profits in the long run.
Firms in perfect competition produce the productively efficient output level in the short run and in the long run.
Firms in perfect competition produce the allocatively efficient output in the short run and in the long run.