If the economy was operating at point O (where the two axes come together), we would have an unemployment rate of ______ percent.

In reference to the long-run firm competitive equilibrium diagram, which of the following statements is INCORRECT?

A) In the long run, the firm has no incentive to alter its scale of operations. B) Because profits must be zero in the long run, the firm's short-run average costs (SAC) must equal P at Qe, which occurs at minimum SAC. C) In the long run, the firm operates where price, marginal revenue, marginal cost, short-run minimum average cost, and long-run minimum average cost all are equal. D) In the long run, this firm must be part of a constant-cost industry, because its marginal revenue curve is perfectly elastic.

Depreciation refers to a decrease in the value of a durable good caused by: a. an increase in the price level. b. changes in the interest rate

c. wear and tear over time. d. changes in tax laws. e. a decrease in its resale value.