In a competitive market, if the market price is equal to the minimum point of the firm's ATC curve, the firm may seek to earn economic profits by
A. Decreasing production costs through technological improvements.
B. Decreasing price.
C. Producing at the rate of output where price equals demand.
D. Increasing price.
Answer: A
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In the late 1960s, the Friedman-Phelps "natural rate hypothesis" predicted from the microeconomic structure of the labor market that the long-run Phillips Curve is ________, while macroeconomic events caused a very ________ acceptance of this ch
in aggregate supply theory. A) horizontal, rapid B) horizontal, gradual C) vertical, rapid D) vertical, gradual
Within the U.S. population, blacks of prime working age (ages 25-54) have higher rates of unemployment than whites of prime working age (ages 25-54), regardless of gender
a. True b. False Indicate whether the statement is true or false
Some economists argue that policymakers can use monetary and fiscal policy to reduce the severity of economic fluctuations. What are some things policymakers can do to boost the economy when aggregate demand is inadequate to ensure full employment?
Individual consumers supply ________ and purchase ________.
A. national goods and services; factors of production B. intermediate goods; final goods and services C. final goods and services; factors of production D. factors of production; final goods and services