Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?
A) Production is at minimum average total cost. B) Marginal revenue equals marginal cost.
C) Selling price equals average total cost. D) Selling price is greater than marginal cost.
A
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Refer to the accompanying figure. If the price is $4 today and there is no change in either supply or demand, one would expect the price in the future to be:
A. less than $4. B. greater than $4. C. greater than $6. D. $4.
When the actual price level in an economy turns out to be lower than that expected in the short run, _____
Fill in the blank(s) with the appropriate word(s).
Which of the following statements regarding economic regulation is TRUE?
A) Economic regulation has failed by insisting that firms must be allowed to earn a normal rate of return. B) Rate-of-return regulation has been much more effective than cost-of-service regulation. C) Economic regulation deals only with rates of return, and not with prices. D) Economic regulation deals mainly with prices firms charge, but firms can alter their return by altering quality of service, effectively raising the price per constant-quality-unit.
If the CPI in period 1 is 125 and the CPI in period 2 is 150, then the rate of inflation between period 1 and period 2 is
A. 20%. B. 25%. C. 30%. D. 50%.