An important difference between the situation faced by a profit-maximizing competitive price-searcher firm in the short run and the situation faced by that same firm in the long run is that in the short run,
a. price may exceed marginal revenue, but in the long run, price will equal marginal revenue.
b. price may exceed marginal cost, but in the long run, price will equal marginal cost.
c. price may exceed average total cost, but in the long run, price will equal average total cost.
d. there are many firms in the market, but in the long run, there are only a few firms in the market.
C
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Which of the following creates difficulties in making comparisons of real GDP across nations?
A) Each nation has a different population. B) Relative prices differ sharply across countries. C) Nations produce different goods and services. D) Nations often have different languages.
Monetary policy has the power to make recessions more severe and long-lasting if it is not timed well
Indicate whether the statement is true or false
Consider the opportunity costs of producing goods X and Y that are listed for the four individuals above. Which person has a comparative advantage in producing good Y?
A) Pramilla B) Sam C) George D) Lucas
Which type of restriction on quantity of imports is the most transparent?
A) Quota B) Licensing requirements C) Voluntary export restraints D) Government procurement policies