The main reason a monopolist can earn long-run economic profit, whereas a perfectly competitive firm cannot, is that
a. monopolists operate under economies of scale
b. perfectly competitive firms have opportunity costs
c. demand for the monopolist's output is inelastic
d. demand for the monopolist's output is elastic
e. there are no barriers to entry in perfect competition
E
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If the market price in a competitive market is below the minimum of average variable cost, the firm will shut down
Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) The efficiency loss of a tax is the tax revenue collected by government minus the value of the public goods financed through the tax. 2) The greater the elasticity of demand and supply, the greater is the efficiency loss of a tax. 3) Economists agree that corporations always shift the corporate income tax to consumers by raising product prices. 4) Although state and local taxes are highly progressive, federal taxation is predominantly
The size of the money multiplier depends upon all of the following EXCEPT
A) the required reserve ratio. B) the currency-deposit ratio. C) excess reserves relative to deposits. D) the discount rate.
Using Figure 1.5 above, you can tell that 
A. there is constant opportunity cost. B. there is increasing opportunity cost. C. there is unemployment. D. the technology does not exist to produce 6 units of soda and 1 unit of pizza.