If long-run average costs are falling, then the firm is experiencing diseconomies of scale
Indicate whether the statement is true or false
False
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Which of the following describes what the Fed would do to pursue an expansionary monetary policy?
A) use discount policy to raise the discount rate B) use open market operations to sell Treasury bills C) raise the reserve requirement D) use open market operations to buy Treasury bills
The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that
A) monopolies don't have a supply curve. B) monopolies don't have a demand curve. C) monopolies have the same supply curve as perfectly competitive firms. D) monopolies maximize profit.
In the graph showing the data for the short-run and long-run Phillips curve from 1979–1987, the shift back to the natural rate of unemployment is represented by the move from ______.
a. Point D to Point E
b. Point D to Point F
c. Point E to Point F
d. Point F to Point D
In general, monopolistically competitive firms earn profits _____.
(A) Higher than oligopolies. (B) Slightly above their costs in the long run. (C) Well above their costs in the long run. (D) About the same as oligopolies.