Long-Run Average Cost of the Perfectly Competitive Firm Includes the

question 92

Multiple Choice

Long-run average cost of the perfectly competitive firm includes the

• A)cost of raw materials per unit of output.
• B)opportunity cost of labor per unit of output.
• C)opportunity cost of capital per unit of output.
• D)All of the responses are correct.

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Definitions:

Export Subsidy

A financial assistance given by the government to domestic companies to encourage them to sell their goods abroad.

Softwood Lumber

Timber from coniferous trees such as pine or spruce, often used in construction.

Domestic Supply

The total amount of a product or service produced within a country, available for consumption or export within its borders.

Domestic Demand

The total demand for goods and services within a country, excluding external trade.