Competitive pricing is efficient because
A) the price that consumers pay reflects the opportunity cost to society of producing the good.
B) firms make positive economic profits in long-run equilibrium.
C) average revenue equals average cost.
D) firms produce above the minimum efficient scale.
A
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If foreigners want to buy more U.S. bonds, then in the market for foreign-currency exchange the exchange rate
a. and the quantity of dollars traded rises. b. rises and the quantity of dollars traded falls. c. falls and the quantity of dollars traded rises. d. and the quantity of dollars traded falls.
(Last Word) Which of the following is true about the effects of ZIRP, QE, and Operation Twist?
A. The massive monetary stimulus created high rates of inflation. B. They were unsuccessful at lowering interest rates. C. By lowering borrowing costs, they encouraged expansion of federal budget deficits. D. Pension plan and retirement fund returns increased dramatically.