If the firms in a perfectly competitive market are continually operating where their total costs exceed their total revenue in the short run, then in the long run
a. the number of firms in the market will remain unchanged
b. the number of firms in the market will increase
c. the number of firms in the market will decrease
d. existing firms will increase their plant sizes
e. existing firms will increase their output
C
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To maximize the economic pie, government should
A) provide only those public goods whose benefits outweigh their costs. B) provide no public goods. C) provide only those public goods whose costs outweigh their benefits. D) provide all possible pure public goods.
In Milton Friedman and Edmund Phelps' expectations-augmented Phillips curve, ________
A) unemployment will, in the long run, reach the natural rate B) in the long run, expected inflation will reach the NAIRU C) inflation is positively related to the unemployment gap D) all of the above E) none of the above
If a firm is minimizing the cost of producing its chosen level of output, the marginal product of the last dollar spent on each input should be equal
Indicate whether the statement is true or false
All the people employed at or just above the minimum wage could be considered the _____.
Fill in the blank(s) with the appropriate word(s).