The profit of a perfectly competitive firm is maximized at a level of output where its marginal cost is rising
a. True
b. False
Indicate whether the statement is true or false
True
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If a monopolistically competitive firm is in long-run equilibrium and average cost equals $150, then the market price must be $150
a. True b. False
When the monetary policymakers raise the target inflation rate they:
A. in effect move up along the current monetary policy reaction curve. B. in effect shift the monetary policy reaction curve to the left. C. lower the current real interest rate at every level of current inflation. D. raise the current real inflation rate at every level of current inflation.
In considering the costs involved for student loans that must be repaid in ten years, this Application is addressing the economic concept of
A) the principle of diminishing returns. B) the real-nominal principle. C) the marginal principle. D) the principle of voluntary exchange.
Explain the separate effects of each event on U.S. real GDP and the price level, starting from a position of long-run equilibrium
What will be an ideal response?