When a profit-maximizing firm in a competitive price-searcher market is in long-run equilibrium, price equals
a. marginal cost, and profits are positive.
b. average total cost, and profits are zero.
c. marginal cost, and profits are zero.
d. average total cost, and profits are positive.
B
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Which of the following causes excess demand?
A. The market price is below the equilibrium price. B. The demand curve shifts to the left. C. The quantity supplied is greater than the demand. D. The market price is above the equilibrium price.
The reason that the claim that floating exchange rates result in greater economic autonomy for individual countries may not be entirely accurate is that
A) empirical research finds no supporting data. B) policy makers are influenced by the effect of domestic policies on the exchange rate. C) there is no generally satisfactory method for measuring economic autonomy. D) it is based on the assumption of a gold standard. E) countries that run large trade deficits must increase exports to balance trade.