Which statement is true?
A. The firm is making a profit in the short run.
B. The firm is taking a loss in the short run.
C. The firm is breaking even in the long run.
D. The firm is making a profit in the long run.
C. The firm is breaking even in the long run.
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Positive spending shocks lead to ________ output ________
A) higher; in both the short and long runs B) higher; in the short run but not in the long run C) lower; in both the short and long runs D) lower; in the short run but not in the long run
A positive demand shock will
a. shift the AD curve to the left. b. increase real GDP and the price level in the short run. c. decrease real GDP and the price level in the short run. d. increase real GDP and decrease the price level in the short run. e. decrease real GDP and increase the price level in the short run.
When a market is monopolistically competitive, the typical firm in the market is likely to experience a
a. positive profit in the short run and in the long run. b. positive or negative profit in the short run and a zero profit in the long run. c. zero profit in the short run and a positive or negative profit in the long run. d. zero profit in the short run and in the long run.
Distribution control can be accomplished through all but which one of the following methods?
A. Expensive gifts at Christmas. B. Predatory pricing. C. Long-term supply contracts. D. Selective discounts.