In a long-run equilibrium in a perfectly competitive market, firms are selling at a price equal to marginal cost
a. True
b. False
Indicate whether the statement is true or false
True
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Sunk costs
a. can only be measured in monetary terms b. are opportunity costs c. should influence a person's choice if that person is a marginal decision maker d. lower the efficiency of production e. should not be considered when making economic decisions
In economics, secondary effects refer to the
a. value of the goods that an individual must give up as the result of choosing an alternative. b. indirect effects that often result from an action or policy change. c. immediate and highly visible intended consequences of an action or policy change. d. value of a good derived by the consumer.
Price elasticity of demand measures:
A. the change in price brought about by a change in consumer demand. B. how consumers change their purchases in response to a change in income. C. how consumers change their purchases in response to a change in the price of a substitute good. D. how consumers change their purchases in response to a change in the price of a product.
If a decrease in net taxes in the United States resulted in a very large increase in aggregate output and a very small increase in the price level, then the U.S. economy must have been
A. on the very flat part of the short-run aggregate demand curve. B. on the very steep part of the short-run aggregate demand curve. C. on the very steep part of the short-run aggregate supply curve. D. on the very flat part of the short-run aggregate supply curve.