Macro equilibrium is established at which price level, given AD1 and AS1 in Figure 8.3?

If a firm with a constant returns to scale production function pays all factors their marginal products, then:

A. economic and accounting profits are both zero. B. economic profit is zero and accounting profit is positive. C. economic profit is positive and accounting profit is zero. D. economic and accounting profit are both positive.

In oligopoly, firms

A. are able to influence price only if the oligopolist's products are differentiated. B. by virtue of their size, are able to influence price regardless of whether or not the product is differentiated or standardized. C. are able to influence price only if the oligopolist's products are standardized. D. have no influence over price regardless of whether or not the product is differentiated or standardized.