If a market is productively efficient,
a. the output is being produced at the lowest possible resource cost
b. the output is selling for the lowest possible price
c. economic profit in the market is positive
d. the output being produced is what consumers want
e. no firm can earn a normal profit
A
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Firms in monopolistic competition determine the profit-maximizing level of output by producing
A) the same output level as rivals do. B) where average total cost is minimized. C) at the point of minimum average fixed cost. D) where marginal revenue equals marginal cost. E) where price equals average total cost.
Times of recession or depression often seem to be times when the
a. inflation rate is higher. b. inflation rate is lower. c. deflation rate is lower. d. deflation rate is higher.
Regardless of the price of ice cream, Charlie spends $5 a week on ice cream. What can we conclude about Charlie's demand for ice cream?
a. His income elasticity of demand for ice cream is equal to one. b. His income elasticity of demand for ice cream is equal to zero. c. His price elasticity of demand for ice cream is equal to one. d. His price elasticity of demand for ice cream is equal to zero
The economy's aggregate supply curve reflects
A) A normal range. B) A Keynesian or depression range. C) A classical range. D) All of the above.