A monopoly will be maximizing profit if it is operating at the point where the
a. price is at a maximum
b. average cost is at a minimum
c. average cost is at a maximum
d. marginal cost is at a minimum
e. marginal revenue = marginal cost
E
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The short-run break-even price
A) is the price at which the firm's current liabilities are paid off. B) is the price at which a firm's total revenues equal total costs. C) occurs at the output at which the firm yields a below normal rate of return. D) occurs at the output at which the firm yields a positive economic profit.
In analyzing recessions, Keynes' view was that
A. the economy may eventually recover by itself, but it takes too long. B. the government could stimulate aggregate purchases by reducing the budget deficit. C. the economy will never recover because wages and prices will never adjust downward. D. any cyclical unemployment will be short-lived, and thus there is no need for increased government spending.