Which of the following is not a condition of long-run equilibrium for perfectly competitive firms?
a. price is equal to marginal cost
b. price is equal to minimum short-run average total cost
c. price is equal to minimum long-run average cost
d. price is equal to marginal revenue
e. economic profit is positive
E
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Which of the following shifts the aggregate demand curve leftward?
A) a decrease in government expenditure on goods and services B) an increase in the price level C) a tax cut D) an increase in foreign income E) a decrease in the price level
The law of diminishing returns assumes that
A) there is at least one fixed input. B) all inputs are changed by the same percentage. C) additional inputs are added in smaller and smaller increments. D) all inputs are held constant.
If the government imposes a price ceiling,
a. producers must charge the ceiling price b. the price offered by producers must be no lower than that ceiling price c. the price offered by producers must be no higher than that ceiling price d. producers would be inclined to increase the quantity supplied e. the market supply curve shifts to the right
In Figure 30.2, unemployed labor at the equilibrium wage is equal to
A. 28 workers. B. 0 workers. C. 10 workers. D. 34 workers.