The rocketing prices of imported oil in 1973-1974 and again in 1979-1990 are good exampled of what type of inflation?
What will be an ideal response?
cost-push inflation
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In the long run, what level of economic profits can a monopolistic competitor expect to receive?
A) positive B) zero C) negative D) either negative or positive, depending on the demand for its product and its costs
A sometimes short, sometimes extended period of declining output and living standards is referred to as a recession.
A single-price monopolist will always produce where the elasticity of demand
A) is greater than 1. B) is smaller than 1. C) equals 1. D) equals infinity.
If General Electric finds that when it doubles both its plant size and the amount of associated inputs, its output level does not double, then
a. the law of diminishing returns is in effect. b. long-run average costs must be decreasing. c. the firm is experiencing diseconomies of scale. d. the firm should increase production. e. the firm is experiencing constant returns to scale.