When a firm's demand curve is tangent to its average total cost curve, the
a. firm's economic profit is zero.
b. firm must be earning economic profits.
c. firm must be incurring economic losses.
d. firm must be operating at its efficient scale.
a
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M1 money includes all but which one of the following?
a. Savings accounts b. Paper money c. Coins d. Checkable deposits
An increase in demand causes equilibrium price and quantity to rise, other things constant.
Answer the following statement true (T) or false (F)
Relative to a monopoly charging a single price to all consumers, perfect price discrimination ________ producer surplus and ________ consumer surplus.
A. decreases; decreases B. decreases; increases. C. increases; decreases D. increases; increases
Which one of the following statements best describes the monetarist view of economic stabilization?
A. Discretionary policies often do more harm than good. B. Monetary policy should be used to fine-tune the economy. C. Fiscal policy is more effective than monetary policy. D. Both monetary and fiscal policy are unable to influence output, employment, and the price level.