For a monopolistically competitive firm in long-run equilibrium,
A. the demand curve must be tangent to the average total cost curve at the ATC curve minimum.
B. at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve.
C. the demand curve must intersect the average total cost curve at the ATC curve minimum.
D. at the profit-maximizing quantity, the demand curve must intersect the average total cost curve.
Answer: B
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The above figure shows the U.S. market for flip-flops. With international trade, the United States imports ________ flip-flops
A) 300,000 B) 500,000 C) 700,000 D) 0 flip-flops because the United States exports E) 400,000
In the short run, a perfectly competitive firm may earn economic profits that are
a. positive. b. positive but very small. c. negative. d. all of the above.
During the Great Depression of the 1930s, unemployment peaked at _____%
a. 5 percent b. 10 percent c. 20 percent d. 25 percent e. 30 percent
Which of the following can create demand-pull inflation?
a. Higher labor costs b. Recessions and depressions c. Sharply rising oil prices d. Excessive aggregate spending