In a long-run perfectly competitive equilibrium,
a. marginal cost and marginal revenue are the greatest distance apart
b. barriers to entry are established by entrenched firms
c. the typical firm will earn an economic profit
d. average total cost is rising
e. price and marginal cost are equal to minimum short-run and long-run average total cost
E
You might also like to view...
In the above figure, which movement illustrates the impact of a constant price level and a rising money wage rate?
A) E to I B) E to F C) E to J D) E to H
A contractionary monetary policy can reduce the inflation rate without causing a rise in unemployment if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
Economists who believe there is a short-run trade-off between inflation and unemployment attribute it to the ______.
a. complete flexibility of prices b. complete flexibility of wages c. slow adjustment of input prices d. fast adjustment of input prices
When real output decreases, planned aggregate expenditures decrease because:
A. induced expenditures decrease. B. autonomous expenditures increase. C. induced expenditures increase. D. autonomous expenditures decrease.