In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?
A) In the long run, the firm has no incentive to alter its scale of operations.
B) Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC.
C) In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal.
D) In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.
D
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If demand were inelastic, then we should immediately:
a. cut the price. b. keep the price where it is. c. go to the Nobel Prize Committee to show we were the first to find an upward sloping demand curve. d. stop selling it since it is inelastic. e. raise the price.
Production possibilities curves can shift outward but they do not shift inward
Indicate whether the statement is true or false
The equation of exchange states that:?
?a) government spending = taxes plus the federal budget deficit. ?b) the reciprocal of the reserve requirement = the deposit expansion multiplier. ?c) the money supply times the velocity of money = the price level times the quantity of goods and services produced. ?d) the price level times the velocity of money = the money supply times the quantity of goods and services produced.
Which of the following would reduce the supply of baseball hats?
a. An increase in the demand for baseball hats.
b. A new tax imposed on the producers of baseball hats.
c. A reduction in the price of cloth used to make baseball hats.
d. All of the above.