If a firm is currently equating MR and MC and product price = $24, AVC = $22, and ATC = $26, then in the long run this firm:
a. will continue to operate at a loss.
b. will earn a positive profit.
c. will go out of business.
d. should increase output.
e. should decrease price.
c
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Answer the next question based on the given supply and demand data for wheat.Bushels Demanded Per monthPrice per BushelBushels Supplied Per Month45$57750473563686126167157If the price in this market was $4
A. the market would clear; quantity demanded would equal quantity supplied. B. there would be a shortage of wheat. C. buyers would want to purchase more wheat than is currently being supplied. D. farmers would not be able to sell all their wheat.
Changes in the quality of a good
a. do not present a problem in the construction of the consumer price index. b. present a problem in the construction of the consumer price index, and that problem is sometimes referred to as substitution bias. c. are not accounted for, as a matter of policy, by the Bureau of Labor Statistics. d. can lead to either an increase or a decrease in the value of a dollar.
In macroeconomics, the long run refers to:
A. two years. B. one year. C. ten years. D. None of these is true.
List and briefly describe the three key reasons for income inequality in a market-based economy.
What will be an ideal response?