Properties of long-run competitive equilibrium with free entry include:
A. an equilibrium price equal to the minimum AC.
B. firms earning zero profits.
C. active firms producing at their efficient scales of production.
D. All of these are properties of long-run competitive equilibrium.
D. All of these are properties of long-run competitive equilibrium.
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As output increases, the slope of the curve showing the firm's average fixed cost is
A) first negative, then positive. B) first positive, then negative. C) always negative. D) always positive.
Suppose there is an increase in expected future taxes. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period