In long-run equilibrium under conditions of pure competition and productive efficiency, all firms produce at minimum:
A. average variable cost.
B. marginal cost.
C. total cost.
D. average total cost.
Answer: D
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
When a tariff is imposed, the demand curve for the domestic good
A) shifts downward and to the right. B) shifts upward and to the left. C) shifts upward and to the right. D) shifts downward and to the left.
Control of a scarce resource or input can serve as an entry barrier
a. True b. False Indicate whether the statement is true or false
Which of the following would most likely be a natural monopoly?
a. Gas utility company b. Agricultural firm c. Youth apparel company d. Automotive manufacturer