In the long run, price elasticities of demand are usually
A. greater than they are in the short run because consumers have time to adjust.
B. the same as they are in the short run because tastes don't change.
C. less than they are in the short run because prices rise over time.
D. less than they are in the short run because real prices fall over time.
Answer: A
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Equilibrium in a monopoly occurs when:
a. the monopolist has driven out all competitors. b. the monopoly firm has sold the maximum number of units. c. the monopoly firm produces the quantity that maximizes its profits (or minimizes loss) where MR = MC. d. the monopoly firm has gotten unions to agree to wage concessions.
Schumpeter maintains that recessions provide businesspeople with incentives to advance technologically
Indicate whether the statement is true or false