If the economy is not in a long-run equilibrium and other things are equal, then prices will eventually adjust to bring the economy to a long-run equilibrium.
Answer the following statement true (T) or false (F)
True
If the economy is not in a long-run equilibrium, pressures to adjust prices will arise, and when prices do change, the SAS curve will shift until a long-run equilibrium is reached.
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The total revenue test for elasticity:
A. is equally applicable to both demand and supply. B. does not apply to demand because price and quantity are inversely related. C. does not apply to supply because price and total revenue always move together. D. applies to the short-run supply curve but not to the long-run supply curve.
Normative economic analysis involves
A) positive analysis. B) value judgments. C) if-then statements. D) objective descriptions of the way things are.
Recall the Application about the shutdown price for coal to answer the following question(s).Recall the Application. Because the higher cost of keeping workers safe was the reason why 4 West Mine was shut down, then those costs are considered a part of:
A. variable costs. B. fixed costs. C. total revenues. D. marginal revenues.
If the four-firm concentration ratio equals 0.1 percent for the Mexican tomato industry, then this industry is best characterized as
A) a monopoly. B) monopolistic competition. C) an oligopoly. D) perfect competition. E) either a monopoly or monopolistic competition.