Suppose that the firms in the perfectly competitive wheat industry are currently receiving a price of $2 bushel for wheat. The minimum possible average total cost of producing wheat in the long run is $1 per bushel. It follows that:

The supply curve of a perfectly competitive firm is:

The minimum possible average total cost of producing generic antidepressant medication in the long run is $ 10 bottle. Suppose in this perfectly competitive industry firms are receiving a price of $20 per bottle for their in the short run and there are constant returns to scale. Other things being equal, it follows that:

The minimum possible average total cost of producing rubbing alcohol in the long run is $2 per bottle. Suppose in the perfectly competitive rubbing alcohol industry firms are receiving a price of $4 per bottle for their product in the short run and there are constant returns to scale. Other things being equal, it follows that:

To manufacture 3,000 pairs of sandals in a week, a firm can use 3,600 workers and 135 machines or 270 machines and 3,300 workers. Which method is more technically efficient?

To manufacture 3,000 pairs of sandals in a week, a firm can use 7,200 workers and 270 machines or 540 machines and 6,600 workers. Which method is more technically efficient?

The long-run average cost of producing 28 units of output is $120; the long-run average cost of producing 36 units is $108. These numbers imply that

A firm can use 120 workers and 30 machines. 100 workers and 40 machines, or 140 workers and 18 machines to produce 100 desks. If each worker costs $60 and each machine is rented for $1,200, the economically efficient input combination is: