When a monopolistically competitive firm is in long-run equilibrium,
a. marginal revenue is equal to marginal cost.
b. average total cost is minimized.
c. marginal revenue is tangent to average total cost.
d. All of the above are correct.
a
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Refer to the following graphs to answer the question below.
In which graph would the indicated shifts cause equilibrium quantity to definitely rise, but the effect on price is indeterminate?
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
In the U.S. balance of payments, exports to Europe are recorded as a
a. a use of funds in the current account. b. negative item in the current account. c. capital inflow item. d. capital outflow item. e. None of the above
If a government policy increases benefits to the unemployed without having a detrimental effect on any other constituent, the policy is
A) a Pareto improvement. B) redistributive. C) regressive. D) a positive externality effect.
In the long run, a decrease in the money supply will
A) decrease real Gross Domestic Product (GDP). B) increase real Gross Domestic Product (GDP). C) increase the price level. D) decrease the price level.