A regulatory policy under which the government picks the point on the demand curve at which price equals average cost is known as:
A. average-cost pricing.
B. marginal-cost pricing.
C. average-revenue pricing.
D. competitive pricing.
Answer: A
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The output losses from an adverse inflation shock are ________ and the output losses from a fall in potential output are ________.
A. large; small B. small; large C. permanent; temporary D. temporary; permanent
Describe why monetary policy rules are superior to discretionary monetary policy
What will be an ideal response?
The above figure shows the situation of a monopolistic competitor in the short run. The maximum economic profits of the firm equal
A) $50,000. B) $30,000. C) 15,000. D) zero.
Which of the following is true? a. As long as human wants exceed available resources, scarcity will exist
b. Scarcity ultimately leads to competition for the available goods and services. c. Scarcity affects everyone to the same degree. d. Both a. and b. are true.