If a nondiscriminating monopolist is operating at an output level where price equals average total cost, we can conclude that
a. economic profit is $0
b. the firm is not maximizing profit
c. the firm should go out of business in the long run
d. the firm is not earning its normal profit
e. the firm should shut down in the short run
A
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Collusive behavior guarantees economic profits in the long run for oligopolists
a. True b. False Indicate whether the statement is true or false
Which of the following could contribute to a rise in GDP yet may not be economically beneficial?
a. building schools b. water treatment plant construction c. tobacco sales d. airport construction
Macroeconomic equilibrium occurs when the quantity of output _____ equals the quantity of output _____.
Fill in the blank(s) with the appropriate word(s).
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.