When a profit-maximizing firm in a monopolistically competitive market is in long-run equilibrium,
a. the demand curve will be perfectly elastic.
b. price exceeds marginal cost.
c. marginal cost must be falling.
d. marginal revenue exceeds marginal cost.
b
Economics
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To study a macroeconomy, we calculate aggregate quantities in real terms because
A) we want to get rid of the illusion of price effects. B) we want to concentrate on the production of real goods, as opposed to services. C) it is then easier to take logarithms. D) it is the only way to reconcile the three approaches to measuring GDP.
Economics
The total social cost of production is equal to
A) external cost minus internal cost. B) internal cost minus external cost. C) external cost plus internal cost. D) internal cost plus opportunity cost.
Economics