If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $1.50 and its long-run average cost is $1.50, which of the following statements is true?
A) The firm should expect the market price of its product to fall.
B) The firm should expect to earn positive economic profit indefinitely.
C) The firm should expect the market price of its product to increase.
D) The firm is earning zero economic profit.
D) The firm is earning zero economic profit.
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Pluralistic ignorance exists when
A) the members of a group believe one thing but mistakenly assume that most of the other members believe something else. B) a group of bystanders all agree that something needs to be done but each feels less personal responsibility for taking action because each perceives that there are others who could take action. C) a majority of people in a group do not have the intellectual capacity of arriving at a viable solution to a public goods problem. D) the least-capable member of a group exerts his influence over the rest of the group when trying to arrive at a decision on how to internalize an externality.
The principal lag for monetary policy
a. and fiscal policy is the time it takes to implement policy. b. and fiscal policy is the time it takes for policy to change spending. c. is the time it takes to implement policy. The principal lag for fiscal policy is the time it takes for policy to change spending. d. is the time it takes for policy to change spending. The principal lag for fiscal policy is the time it takes to implement it.