An Important Difference Between the Situation Faced by a Profit-Maximizing

question 209

Multiple Choice

An important difference between the situation faced by a profit-maximizing competitive price-searcher firm in the short run and the situation faced by that same firm in the long run is that in the short run,

• A) price may exceed marginal revenue, but in the long run, price will equal marginal revenue.
• B) price may exceed marginal cost, but in the long run, price will equal marginal cost.
• C) price may exceed average total cost, but in the long run, price will equal average total cost.
• D) there are many firms in the market, but in the long run, there are only a few firms in the market.

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Definitions:

Bacteriophage

Type of virus that infects bacteria.

Emerging Disease

An emerging disease is a disease that has appeared in a population for the first time, or that may have existed previously but is rapidly increasing in incidence or geographic range.

Vector

In biotechnology, a plasmid or other DNA molecule that can accept foreign DNA and be replicated inside a host cell. In epidemiology, an animal that carries a pathogen from one host to another.

Reverse Transcriptase

An enzyme that catalyzes the formation of DNA from an RNA template, crucial for the replication of retroviruses.