Which of the following accurately describe where long-run equilibrium happens in the monopolistically competitive firm?
a. At P and q*, long-run demand equals average marginal cost and long-run marginal revenue equals total cost.
b. At 0 and q*, long-run demand equals average total cost and long-run marginal revenue equals marginal cost.
c. At P and q*, long-run demand equals average total cost and long-run marginal revenue equals marginal cost.
d. At 0 and q*, long-run demand equals average marginal cost and long-run marginal revenue equals total cost.
c. At P and q*, long-run demand equals average total cost and long-run marginal revenue equals marginal cost.
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A structural budget deficit
A) appeared during the Vietnam War era from 1966-68. B) appeared after 1982 due to tax cuts and spending increases. C) peaked at 5 percent of GDP in mid-1986 and had become a structural surplus by 1997. D) all of the above.
_____ occurs when unobservable qualities are valued incorrectly because of a lack of information
a. Moral hazard b. Adverse selection c. Conspicuous consumption d. Marginal selection e. Statistical discrimination
The United States can reduce its trade deficit by limiting imports through tariffs
a. True b. False Indicate whether the statement is true or false
Too-big-to-fail policy
What will be an ideal response?