For a perfectly competitive firm at its long-run equilibrium
A. P = MR = MC = AC.
B. accounting profit must be zero.
C. P = MR > MC.
D. there are no opportunity costs to be concerned with.
Answer: A
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Should autonomous consumption fall by one dollar, the effect of this on equilibrium income can be offset if government expenditure
A) falls by one dollar. B) rises by one dollar. C) falls by 1/(1 - c) dollars. D) rises by 1/(1 - c) dollars. E) rises by c/(1 - c) dollars.
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a. True b. False Indicate whether the statement is true or false
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