Which of the following is true of a perfectly competitive firm?
a. The firm is a price maker.
b. If the firm wishes to maximize profits it will produce an output level in which total revenue equals total cost.
c. The firm will not earn an economic profit in the long run.
d. The firm's short-run supply curve is its MC curve below its AVC curve.
c
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Which of the following would likely take the longest time to enact?
A) Federal government fiscal policy that strives for a balanced budget B) The Fed's lowering of the discount rate C) The Fed's raising of the discount rate D) The Fed's engagement in open market operations
From 1977-2011, the average duration of unemployment has been highest in which of the following places?
A) Canada B) Europe C) Mexico D) the United States
When opportunity costs rise as more of a good is consumed, the production possibilities frontier will be concave (bowed out) with respect to the origin
a. True b. False
The law of diminishing marginal productivity does not apply in the long run because:
A. no inputs are fixed in the long run. B. some inputs are fixed in the long run. C. all inputs are fixed in the long run. D. some inputs are variable in the long run.