Tossup

Okishio’s theorem proved that this quantity can sometimes increase over time, contradicting Marx. Supply equals the derivative of this quantity with respect to price by Hotelling’s lemma. In (10[1])a perfectly competitive market, firm entry causes the “economic” form of this quantity to go to zero in the long run. (10[3]-5[1])The “normal” form of (10[1])this quantity is less than its “accounting” form since it incorporates opportunity (10[1])cost. To maximize this quantity, firms will produce at the intersection between price and ATC because marginal revenue will equal marginal cost. For 10 points, markup pricing increases what quantity, (10[2])which equals the difference between total revenue and total cost? (10[1])■END■ (10[1])

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