In the short run, a firm will stay in business as long as:
a. price equals average revenue.
b. marginal revenue is greater than or equal to marginal cost.
c. price exceeds average variable cost.
d. price is less than average variable cost.
c
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If wages and prices are flexible, an anticipated change in the money supply has no effect on
A) money demand. B) nominal interest rates. C) real GDP. D) the inflation rate.
In the long run, a monopolistically competitive firm and a perfectly competitive firm both produce at minimum average cost.
Answer the following statement true (T) or false (F)
The world price of cotton is the highest price of cotton observed anywhere in the world
a. True b. False Indicate whether the statement is true or false
Which of the following market structures will have lower output in the long run than perfect competition, ceteris paribus?
A. Monopolistic competition and oligopoly, but not monopoly. B. Monopolistic competition, but not oligopoly or monopoly. C. Oligopoly and monopoly, but not monopolistic competition. D. Monopolistic competition, oligopoly, and monopoly.