Suppose That for Each Firm in the Competitive Market for Potatoes,long-Run

question 40

Multiple Choice

Suppose that for each firm in the competitive market for potatoes,long-run average cost is minimized at $0.20 per pound when 500 pounds are grown.If the long-run supply curve is horizontal,then

• A) some firms will enjoy long-run profits because they operate at minimum average cost.
• B) the long-run price will be $0.20 per pound.
• C) each consumer will purchase $100 worth of potatoes.
• D) the long-run price will be set just above $0.20 per pound.

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Definitions:

Sociological Perspectives

Different ways of viewing and understanding society and its complex interactions, including structural functionalism, conflict theory, and symbolic interactionism.

Authority and Subordination

The dynamic between those in positions of power and those who are subject to that power.

Exchange Theory

A sociological perspective that analyzes social interactions in terms of the exchanged rewards or penalties.

Social Exchange Theory

A sociological and psychological theory that suggests human interactions and relationships are formed based on a cost-benefit analysis by the involved parties.