Between 1990 and 2003, college tuition went up 130 percent, which is __________ the increase in the prices of housing, gasoline, and medical care

Keith is a perfectly competitive carnation grower. The market price is $2 per dozen carnations. Keith's average total cost to grow carnations is $2.50 per dozen. In the long run, Keith will

A) raise his price to more than $2.50 per dozen carnations. B) raise his price to $2.50 per dozen carnations. C) exit the industry if the price and his costs do not change. D) incur an economic loss. E) continue to make an economic profit.

The primary incentive for economic agents to formulate expectations rationally is to

A) increase earnings. B) increase prices. C) reduce prices. D) ensure that all expectations are realized.