A permanent reduction in inflation would
a. permanently reduce menu costs and permanently lower unemployment.
b. permanently reduce menu costs and temporarily raise unemployment.
c. temporarily reduce menu costs and temporarily lower unemployment.
d. temporarily reduce menu costs and temporarily raise unemployment.
b
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Mia wants to buy a book. The economic perspective suggests that Mia will buy the book if the
A. marginal cost of the book is greater than or equal to its marginal benefit. B. marginal cost of the book is affordable for her. C. marginal benefit of the book is greater than zero. D. marginal benefit of the book is greater than or equal to its marginal cost.
Refer to the scenario above. If Molly wins the auction by using her optimal bidding strategy, she will earn a surplus of ________
A) $0 B) $50 C) $14 D) $25
This type of firm would likely operate as a monopoly
A) one of many U.S. wheat farmers. B) one of the few U.S. auto makers. C) AT&T long distance phone service. D) the local water company.
In long-run equilibrium, a perfectly competitive firm produces the output level that minimizes average total cost
a. True b. False Indicate whether the statement is true or false