When a firm's demand curve is tangent to its average total cost curve:
a. the firm must be operating in a monopolistically competitive market.
b. economic profits are zero
c. the firm must be earning economic profits.
d. the firm must be incurring economic losses.
b
Economics
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Assume that M is $500 billion and V is 5. What is the level of nominal GDP according to the monetarist equation? If V rises by 10%, then according to the monetarist equation, what will be the new level of nominal GDP?
What will be an ideal response?
Economics
A positional externality:
A. results in under investment in performance enhancement. B. arises in situations in which rewards depend on relative performance. C. only occurs in sports. D. arises in situations in which rewards depend on absolute performance.
Economics