A constant-cost industry
A) is one in which an increase in demand is matched by a proportional increases in long-run supply.
B) generates increasing profits whenever demand increases because the new long-run equilibrium price is above the old price even though average costs have not changed.
C) has a horizontal long-run supply curve.
D) has a downward sloping long-run supply curve.
C
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Which of the following is a checkable and debitable account?
A) a savings account B) a brokerage account with your stockbroker C) a checking account D) All of the above are checkable and debitable accounts.
Which of the following statements is true?
A) A monopolist's product often has close substitutes. B) Firms under perfect competition produce differentiated products. C) Firms under monopolistic competition produce identical products. D) Firms under oligopoly produce either identical or differentiated products.
If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the actual inflation rate turned out to be 3.2%, then the real interest rate equals
A) 1.7%. B) 3.2%. C) 3.3%. D) 4.7%.
The base for the purchasing power parity adjustment of the GNI is the cost of living in the United States.
a. true b. false