Due to free entry and exit in monopolistic competition, in the long run price must be equal to
average total cost
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The ability of one person or nation to produce a good at a lower absolute cost than another is called a(n)
A) comparative advantage. B) specialization advantage. C) market advantage. D) absolute advantage.
Airlines in other countries buy airplanes from Boeing because
A) it is illegal to produce airplanes in many other countries. B) Boeing's prices are less than what the airlines would pay for planes built in their own country. C) trade treaties require such purchases. D) these nations must buy something from the United States. E) None of the above answers is correct.
A price ceiling is a legally determined maximum price that sellers may charge
Indicate whether the statement is true or false
In the short-run, a temporary increase in money supply
A) shifts the DD curve to the right, increases output and appreciates the currency. B) shifts the AA curve to the left, increases output and depreciates the currency. C) shifts the AA curve to the left, decreases output and depreciates the currency. D) shifts the AA curve to the left, increases output and appreciates the currency. E) shifts the AA curve to the right, increases output and depreciates the currency.