When a competitive price-taker market is in long-run equilibrium
a. the firms in the market will earn zero economic profit.
b. the average total cost of the firms in the market will be minimized.
c. every unit of the relevant good that is valued more than its opportunity costs will be produced and sold.
d. all of the above are correct.
D
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If a monopoly wishes to sell more output, it must:
A. find a more cost effective way to produce its goods. B. lower the price. C. be in the economies of scale range of its ATC. D. eliminate its existing competition.
Which of the following is an example of a negative externality?
a. planting flowers in your front yard b. talking loudly when others are trying to study economics c. people donating money to charity d. the price of bread increases e. denting your neighbor's car fender while backing out of your driveway
An increase in the money supply causes output to rise in the short run.
a. true b. false
The prices of all fixed-income assets (bonds)
A. are independent of the interest rate. B. vary inversely with the interest rate. C. are determined by the U.S. Treasury. D. vary directly with the interest rate.