In the long run, marginal cost must equal marginal revenue for a monopolistic competitive firm, but not at the minimum point of the long-run average cost curve

Which of the following statements about employer prejudice is true?

a. It would be impossible for employer prejudice to exist in a firm that sells its output in a competitive market unless all rivals also discriminate. b. Economic theory tells us that it would be impossible for employer prejudice to exist in a firm that is a monopoly. c. Employer prejudice will help a monopolist to increase his profits by satisfying his managers personal prejudices. d. Legislation has ended employer prejudice in the United States. e. Employer prejudice occurs only in low-paying jobs.

According to the rational expectations theory, expansionary monetary policy will

a. reduce inflation. b. lead to inflation and the higher rate of inflation will be quickly anticipated. c. reduce unemployment because people will generally underestimate the inflationary side effects of the monetary expansion. d. accelerate inflation in the short run, but in the long run the primary effect will be an increase in employment.