In long-run equilibrium, both purely competitive and monopolistically competitive firms will:
A. produce at minimum average total cost.
B. earn economic profits.
C. achieve allocative efficiency.
D. equate marginal cost and marginal revenue.
Answer: D
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Refer to Figure 15-16. If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________
A) Q3 units; P4 B) Q1 units; P1 C) Q1 units; P4 D) Q5 units; P3
Southwest Airlines relies on jet fuel to operate its planes. If it chooses to hedge against future changes in fuel prices, what positions (long or short) will it take in the spot and futures markets?
What will be an ideal response?
A government strong enough to protect individual rights is also strong enough to violate them
a. True b. False
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. Suppose it takes policy makers from time t5 to time t7 to see that the economy has started expanding. This is an example of
A. an implementation lag. B. a response lag. C. a policy lag. D. a recognition lag.