In this graph, point E2 is a(n) ______ equilibrium point because it ______.
a. sustainable; is on the LRAS curve
b. sustainable; is on the SRAS curve
c. unsustainable; decreases output, but not prices from e1
d. unsustainable; decreases prices, but not output from e1
a. sustainable; is on the LRAS curve
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Why cannot firms leave the industry in the short run?
What will be an ideal response?
The meaning of interdependence in a monopolistically competitive market is
A) that it is difficult for firms to get together to collude. B) that products produced by firms will be good substitutes. C) that firms will not take into account the reaction of rival firms. D) that price rigging commonly occurs.
Social regulation is focused on all of the following EXCEPT
A) the impact of production on the environment and society. B) better working conditions, and safer and better products. C) a better quality of life through a less polluted environment. D) ensuring costs are minimized and benefits are maximized.
Deregulation, especially for the transportation and telecommunication industries, was the trend in the United States during the:
a. 1930s. b. 1950s. c. 1970s. d. 1980s.