At long-run equilibrium of a perfectly competitive firm the following condition holds good: Long Run Average-Total-Cost = Long Run Marginal Cost = Average Revenue = Marginal Revenue = Price

If the marginal propensity to save (MPS) increases, the multiplier

A) decreases. B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC). C) increases. D) stays the same.

If consumption of a good creates positive externalities, then

a. the market will under produce it b. the market will over produce it c. the market must be perfectly competitive d. the market must be constrained by barriers to entry e. the market will produce the most efficient quantity