Compared to a monopolistic competitor, a monopoly producer who was currently earning economic profits:
a. would face a more elastic demand curve
b. would face a less elastic demand curve.
c. could continue to earn economic profits for a longer period of time.
d. would be characterized by both (b) and (c).
d
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In the short run, an expansion of output always causes in an increase in: a. TC
b. AFC. c. AVC. d. MC.
The difference between zero accounting profit and zero economic profit is that
a. economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero accounting profit. b. economists do not include opportunity cost in zero economic profit, while accountants do include opportunity cost in zero accounting profit. c. economists include opportunity cost in zero accounting profit, while accountants do not include opportunity cost in zero economic profit. d. economists do not include opportunity cost in zero accounting profit, while accountants do include opportunity cost in zero economic profit.
Which of the following is true about monetary policy?
A. It is ineffective in the long run and difficult in the short run. B. It is effective in the long run and easy in the short run. C. It is ineffective in the short run and difficult in the long run. D. It is effective in the short run and easy in the long run.
If the rate of inflation is 6 percent, the nominal interest rate is 9%, and the unemployment rate is 7%, how much is the misery index?
What will be an ideal response?