Refer to Figure 8.5. If the wage rate is $5 and the rental rate of capital is $10, what is the lowest cost of producing 30 units of output?

If a monopolistically competitive firm is in long-run equilibrium and average cost equals $150, then the market price must be $150

a. True b. False

According to the Phillips curve, a more expansionary macro-policy that causes inflation to be greater will:

a. place downward pressure on prices. b. reduce unemployment. c. reduce output. d. reduce the natural rate of unemployment.