Question

Which statement is false?

a. to maximize profits, the firm will produce at a quantity where price equals marginal revenue.
b. long-run supply curves are usually more elastic than short-run supply curves.
c. in the long-run balance, the marginal firm has equal economic profit.
d. gold in the world is limited. therefore, the gold jewelry market may have a long-term upward slope.

Answer 1

The false statement is d. Gold in the world is limited. Therefore, the gold jewelry market may have a long-term upward slope.

Step-by-step explanation:

The false statement is d. gold in the world is limited. therefore, the gold jewelry market may have a long-term upward slope. In the statement regarding gold jewelry, the long-term upward slope in the market is due to the scarcity of gold, which is a non-renewable resource, thus leading to a potential increase in price over time as it becomes more scarce. Gold in the world is limited, which means that the supply of gold is finite.

In the long term, the gold jewelry market may not have a long-term upward slope because as the supply of gold depletes, it becomes more expensive and harder to extract from the earth, leading to a decrease in supply and potentially causing prices to increase. On the other hand, the other statements are true. To maximize profits, a firm will produce at the quantity where price equals marginal revenue. Long-run supply curves are usually more elastic than short-run supply curves.