Which of the following statements is not true in a perfectly competitive industry in long-run equilibrium?
a. A profit-maximizing firm may produce any output level at which P < LRAC.
b. Every firm produces at an output level at which MC = LRAC.
c. There is no entry or exit from the industry.
d. No firm earns an economic profit.
a
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Which statement best describes U.S. tariff history between 1800 and 1940?
A) Tariffs were relatively high throughout, especially during wars, with peaks in 1828 and 1930. B) Tariffs were relatively low throughout, especially during wartime. C) Tariffs were relatively high throughout, especially during wars, with lows in 1828 and 1930. D) None of the above.
The opportunity costs of production in two countries engaged in trade
a. determine which country has an absolute advantage b. influence their domestic inflation rates c. lead to a higher level of economic efficiency d. create shifts of the production possibilities frontiers (PPF's) of both nations e. define the limits of the terms of trade
The real power within the Federal Reserve lies with the
A) Federal Reserve District banks. B) Board of Governors. C) Council of Economic Advisors. D) Council of Monetary Advisors.
In the short run, a competitive firm has a marginal product of labor, MPL = 2L-0.25. The output price is $4 per unit and the wage is $5 per hour. The short-run labor demand curve for the firm is
A) 10L-0.25. B) 8L-0.5. C) 4L0.25. D) 8L-0.25.