The long-run equilibrium condition for firms that operate in perfect competition is
a. P = AVC = MR = MC
b. P = ATC = MR = MC
c. Q = AVC = MR = MC
d. Q = ATC = MR = MC
e. TR = ATC = MR = MC
B
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If there is instability in the demand for commodities,
A) a monetary policy of fixed interest rates will perform better than a policy of holding the real money supply fixed. B) a countercyclical money-supply policy will cause large swings in interest rates. C) a fixed money supply policy will perform better than countercyclical changes in money supply. D) a fixed money supply policy will stabilize interest rates.
Look at the following data: The structural unemployment rate is 4 percent, the natural unemployment rate is 5 percent, and the cyclical unemployment rate is 3 percent. The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.
a. 2; 7 b. 2; 8 c. 1; 7 d. 1; 8
Why would central bankers have to pay attention to forecasts regarding consumer sentiment and expectations of business owners and managers?
What will be an ideal response?
Why is it important that a firm have market power if it wishes to engage in price discrimination?
What will be an ideal response?