True or False? Explain/Illustrate?
a. Having MR=MC is a rule that will maximize profits regardless of whether the firm in question is a competitive firm or a monopolist and this condition is consistent with the rule of setting output to that Q where marginal profit is zero.
b. SAC>SMC implies that (or requires that) MPLL.
c. If a competitive firm is not in long-run equilibrium, a movement to a long-run equilibrium will result in a decrease in price both for the firm and the industry.
d. The costs of changing the rate of production are greater in the long-run than in the short-run.
e. The following statement is a similar to a passage found in your text (p.262): "Competitive firms must maximize profits to survive even though in long-run equilibrium profits are zero." Is this an accurate statement?