microchapter14 - RikkiNorton Microeconomics Chapter14

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Rikki Norton Microeconomics Chapter 14 Questions for Review (1, 2, 4, 5, 8) 1. The market supply curve is usually more elastic in the long run compared to the short run  because there will be more sellers in the market and more opportunities to buy in the long run.  2. The conditions under which a firm will choose to shut down temporarily are if the price of the  good is less than the average variable cost.  4. In order to maximize their profits a company’s marginal revenue and marginal cost would  have to exactly equal.  5. A firm’s price will equal the marginal cost in the short run because of the fixed costs of  production such as land.  8. A competitive firm is a firm that is selling the same products and services as nearby 
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This note was uploaded on 03/14/2011 for the course POLSCI 1123 taught by Professor Thompson during the Spring '11 term at Oklahoma State.

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