A single-plant firm trying to select the rate of output consistent with an overall plant size that yields the minimum efficient scale will choose a rate of output for which
A. the short-run marginal cost curve crosses the short-run average total cost curve at that rate of output.
B. total fixed cots are minimized at that rate of output.
C. the long-run marginal cost curve crosses the long-run average fixed cost curve at that rate of output.
D. long-run average total cost is lowest at that rate of output.
Answer: D
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Price ceilings create shortages, but taxes do not.
Answer the following statement true (T) or false (F)
If a 10 percent change in the price of a good caused a 10 percent change in the quantity demanded of the good, we would say that over this range of prices the good has a(n)
A. elastic demand. B. unit elasticity of demand. C. inelastic demand. D. perfectly elastic demand.
Which of the following ideas of the rational expectations theory has been absorbed into mainstream macroeconomics?
A. The monetary rule. B. The idea that "money doesn't matter." C. The monetary multiplier. D. The idea that "expectations are important"
Refer to the information provided in Figure 8.8 below to answer the question(s) that follow. 
Figure 8.8 Refer to Figure 8.8. If this farmer is producing the profit-maximizing level of output, her marginal cost is
A. $2. B. $8. C. $9. D. $12.