In the long-run equilibrium, a firm's price definitely equals its average total cost in
A) both monopoly and monopolistic competition.
B) neither monopoly nor monopolistic competition.
C) monopoly but not monopolistic competition.
D) monopolistic competition but not monopoly.
D
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Tobin's generalized portfolio approach to the demand for money is based on the assumption that
A) money is needed for transactions. B) all interest-bearing assets are risky. C) the levels of risk and return vary among assets. D) variations in wealth have little effect on asset demands.
The long-run industry supply curve in a decreasing-cost, perfectly competitive industry is
A) negatively sloped. B) perfectly elastic. C) positively sloped. D) perfectly inelastic.
A price drop increases consumer surplus by allowing purchases already being made to be made at a lower price, allowing current buyers to purchase more goods for the same money, and ______.
a. allowing producers to earn more while selling less b. preventing buyers from purchasing too much c. eliminating dishonest producers d. drawing in new buyers
One of the usual policy changes included in an International Monetary Fund prescription is
A. changes in fiscal policy to reduce the government budget deficit. B. decreased regulation of public sector enterprises. C. temporary cartels in domestic product markets. D. increased barriers to imports.