Which of the following is not true of long run equilibrium under monopolistic competition?
a. Price equals marginal cost
b. Price equals average cost.
c. Price equals minimum average total cost.
d. None of the above.
d
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The Monetarists argue that in the long run, the Phillips Curve is vertical because
A) wages and prices are flexible. B) money demand is unstable. C) investment is unstable. D) wages change more slowly than the price level.
A profit-maximizing firm will never hire that quantity of a factor of production for which that factor has an increasing marginal productivity because:
a. it would not be maximizing output. b. it would not be maximizing the productivity of labor. c. it would not be minimizing costs. d. it would not be maximizing profits.
The goods and services that count toward GDP are defined in terms of:
A. the location of production, not the citizenship of the producer. B. the citizenship of the producer, not the location of production. C. citizens producing within a country's borders. D. total production of companies owned by citizens, regardless of the actual location of production.
An arrangement between firms whereby decision-making is controlled by a board of trustees is known as:
A. a trust. B. a compact between industry and government. C. predatory pricing. D. a merger.