The existing machine can currently be sold for 25000 without incurring any removal or cleanup costs. The firm is subject to a tax rate. Calculate the initial cash flow associated with the proposed purchase of a new grading machine.

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.