About planning on capacity utilization: Producers typically
a. disregard interest rates when making long-term decisions about capacity utilization
b. end up with high interest rates when planning for future capacity utilization
c. operate at 100 percent capacity
d. enjoy carrying excess productive capacity
e. choose a capacity rate that gives them some degree of short-run flexibility
E
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Which of the following statements best describes firms under monopolistic competition?
a. Profits will be positive in the long run. b. Price always equals average variable cost. c. In the long run, positive economic profit will be eliminated. d. Marginal revenue equals minimum average total cost in the short run.
Nicole has just finished high school and started looking for her first job, but has not yet found one. As a result, the unemployment rate
a. increases, and the labor-force participation rate is unaffected. b. increases, and the labor-force participation rate increases. c. is unaffected, and the labor-force participation rate increases. d. increases, and the labor-force participation rate decreases.
Refer to the graph shown. The marginal rate of substitution at point B is:
A. the same as the marginal rate of substitution at point C. B. the same as the marginal rate of substitution at point A. C. the same as the marginal rate of substitution at point D. D. impossible to determine with the information given.
Based on the redistributive income effects of inflation, who "loses" when there is inflation? (3)
What will be an ideal response?