Absolute price elasticities are calculated for four commodities, and the values are: 0.009; 1.0; 3.3; and 4.1. Which indicates the most price-responsive situation?

A monopolistic competitive firm is inefficient because the firm:

a. is not maximizing its profit. b. is producing at an output where average total cost is not minimum. c. earns positive economic profit in the long run. d. none of these.

The rate of unemployment that occurs when the economy is producing its potential GDP _____

a. is called the natural rate of unemployment b. is zero c. is thought to be approximately 10% d. can be kept at zero through fiscal policy e. is equal to the rate of stagflation in most years