Refer to Figure 5-2. The true marginal cost of the last unit produced is represented by the price

When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell

A) any positive output the entrepreneur decides upon because all of it can be sold. B) nothing at all; the firm shuts down. C) the output where average total cost equals price. D) the output where marginal revenue equals marginal cost.

A tradeoff between inflation and unemployment is shown directly by the __________ curve

A) Fisher B) Phillips C) Friedman D) aggregate demand