In the long run, a firm in monopolistic competition produces where the slope of the average total cost curve is
A) negative.
B) zero.
C) positive.
D) equal to the marginal cost.
A
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Theory suggests that minimum-wage laws create ________ unemployment, especially among younger workers
A) frictional B) cyclical C) structural D) under-reported
The Fed engages in open market operations and sells government securities. The result is
A) lower interest rates. B) higher interest rates. C) interest rates remain unchanged since there is no reason to think bond prices changed. D) uncertain since more information is needed.
A change in household indebtedness will cause a movement along an existing aggregate demand curve.
Answer the following statement true (T) or false (F)
If real income rises 4%, prices rise 1%, and nominal money demand rises 4%, what is the income elasticity of real money demand?
A. 3/4 B. 4/5 C. 1 D. 5/6