Which of the following equations accurately reflects long-run equilibrium in the monopolistically competitive firm?
a. DLR > ATC and MRLR = MC
b. DLR < ATC and MRLR > MC
c. DLR = ATC and MRLR = MC
d. DLR = ATC and MRLR < MC
c. DLR = ATC and MRLR = MC
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A) tax revenues and the federal budget surplus. B) the money supply and money demand. C) disposable income and interest rates. D) real GDP and employment.
Assume the income elasticity for a particular good has been estimated to be -0.68. Based on this information, we can infer that the good is inferior and a necessity
Indicate whether the statement is true or false
A firm will hire a unit of input up to the point where
A) the marginal cost of the input equals the marginal cost of output. B) the marginal revenue product of the input is equal to the marginal factor cost of the input. C) the price of the input is equal to the price of output. D) the marginal physical product of the input is equal to the price of output.
For an economy to eliminate inflation once people have begun to anticipate it, _____
a. a passive policy approach must be followed b. the monetary authorities must announce their decisions c. actual inflation must be greater than anticipated inflation d. cold turkey solutions that lead to further inflation must be avoided e. a recession will have to be endured until expectations have been reduced