The long-run aggregate supply curve
A. is vertical because there is one price level and an infinite number of outputs.
B. relates the level of nominal output produced by firms to the implicit price deflator.
C. relates the level of output produced by firms to the price level in the long run.
D. is determined by the real output demanded by economic agents in an economy.
Ans: C. relates the level of output produced by firms to the price level in the long run.
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A perfectly competitive firm is producing 50 units of output and selling at the market price of $23. The firm's average total cost is $20. What is the firm's economic profit?
A) $23 B) $150 C) $1,000 D) $1,150 E) $50
Court decisions aiming to resolve disputes by determining who in fact possesses contested legal rights
A) prevent any change from occurring. B) prevent undesirable changes from occurring. C) promote cooperation by clarifying and stabilizing expectations. D) substitute legal criteria for economic criteria and thereby create windfall profits and losses. E) substitute public-welfare criteria for private-interest criteria.