In a perfectly competitive industry, in the long-run equilibrium
A) the typical firm is producing at the output where its long-run average total cost is not minimized.
B) the typical firm is earning an accounting profit greater than its implicit costs.
C) the typical firm earns zero profit.
D) the typical firm is maximizing its revenue.
Answer: C
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If the Fed increases the money supply, then: a. the interest rate declines and the quantity of money demanded increases
b. the interest rate declines and the quantity of money demanded declines. c. the interest rate increases and the quantity of money demanded increases. d. the interest rate increases and the quantity of money demanded declines. e. the interest rate increases but the quantity of money demanded remains unaffected.
Which of the following is the marginal tax rate?
A. The fraction of each additional dollar of income that must be paid in taxes. B. The total tax paid divided by total income. C. The tax rate paid by the average taxpayer.