When a monopolistically competitive firm is in long-run equilibrium:
A. production takes place where ATC is minimized.
B. marginal revenue equals marginal cost and price equals average total cost.
C. normal profit is zero and price equals marginal cost.
D. economic profit is zero and price equals marginal cost.
Answer: B
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The value of final goods and services equals:
A. total business profits. B. the sum of revenues from all sales. C. total business spending. D. the sum of the value added by all firms.
Say's law
A) explains the role of money. B) deals with interest rates, employment, and production. C) was accepted and praised by John Maynard Keynes. D) None of the above.
Fixed costs stay the same even as the output level of the firm changes
Indicate whether the statement is true or false
The EITC differs from other programs in that
A. it provides actual food. B. it is administered by the Internal Revenue Service rather than a human services agency. C. it is part of the Social Security system. D. it is administered by the states rather than the Federal government.