The term excess capacity refers to the fact that a firm produces a lower quantity than it would if it operated at the efficient scale

The slope of the LM curve will be steeper the __________ is the income-sensitivity of the demand for money and the __________ is the interest-sensitivity of the demand for money

A) less; less B) less; greater C) greater; less D) greater; greater

Willie Stand obtains a patent on his new invention, the bipod. After twenty years,

a. he can renew his patent b. new entrants will begin bipod production if price exceeds average variable cost c. new entrants will drive up the price of the bipod d. Willie will eventually earn no more than a normal profit e. Willie will continue to earn a positive economic profit, because entry will not affect the price of bipods