A perfectly competitive firm's long-run supply curve is that part of its MC curve that lies above the point where MC = AVC
Indicate whether the statement is true or false
F
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Wealth and income are the same
Indicate whether the statement is true or false
Which of the following is not consistent with the ethics underlying the wage rate determined in a perfectly competitive labor market?
a. wage rate differentials between women and men, and between white and minority workers b. workers should receive their MRP c. noncompeting labor markets d. competing labor markets e. wage rate differentials between workers with different abilities and talents
Economists use the three-step method to determine whether a firm is generating economic profits, economic losses, or zero economic profits at the ______.
a. profit-maximizing level of input b. profit-maximizing level of output c. profit-minimizing level of input d. profit-minimizing level of output
If private sector investment does not respond much to interest rate changes, then
A) there will be more crowding out when expansionary policies are undertaken. B) there will be less crowding out when expansionary policies are undertaken. C) fiscal policy will be less effective than monetary policy. D) monetary policy will be more effective than fiscal policy.