In the long run, a monopolistically competitive firm's price equals
A) its average total cost and its marginal cost.
B) its average total cost but not its marginal cost.
C) its marginal cost but not its average total cost.
D) neither marginal cost nor its average total cost.
B
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The Fed buys $20,000 of government securities. The desired reserve ratio is 5 percent and the currency drain ratio is zero. What will be the change in the quantity of money?
A) $400,000 B) $20,000 C) $19,000 D) $5,000 E) $399,980
Using the information in the table above, calculate the unemployment rate
A) 53.3 percent B) 30.8 percent C) 13.3 percent D) 7.7 percent
Firms in monopolistic competition make products that are
A) perfect complements. B) close but not perfect complements. C) perfect substitutes. D) close but not perfect substitutes.
Taxes can yield the efficient level of pollution if the tax is set equal to the
A) marginal benefit of pollution. B) marginal external cost of the pollution. C) marginal social cost of the pollution. D) equilibrium price of the pollution.